How to hand over your property management to the pros
There are a variety of reasons that property owners hand over the maintenance and management of their rental homes and units to qualified property managers. They range from sheer lack of time, to frustrations in past tenant communications, to the challenges that come with absentee landlording from a different state, among many other issues.
But the key with making the decision to go with a property manager who can take over all the hassles and worries that come with renting properties to people is that you actually let the property manager do the dirty work!
After many years in the business too many times Rize Homesource has seen owners trying to cling to some sense of control over a property. From experience, we have found one thing to be true: micro-managing never works in property management contracts.
First it confuses tenants and undermines trust. Second it muddles communication between all parties, including contract maintenance workers. Finally, it can add more stress to an owner’s life than before deciding to work with a property manager. The point is, once you hire a pro to manage your property, to get your money’s worth you have to step back, take a high-level view, trust that you’ve made an educated decision and truly let the property management company deal with the details.
Taking the step to hire a property management firm can be hard, especially when owners have existing relationships with long-time renters, or are wondering whether the costs of a property manager (anywhere between 8% and 12% of what you collect in rent revenue) is really worth it. To put you at ease, we wanted to share some reasons why it’s not only valuable to hire a property manager, but can be even better when you fully hand off your rental property to the pros.
The more properties (or the more you’re gone), the more valuable a property management company will become to your life. If you have several rental units or homes, especially if you don’t live or work near them, a property manager is vital to the protection and upkeep of what may be your largest investment. A property manager can help you market your property; find (and keep) quality tenants; handle all day-to-day maintenance and payment issues; align with third-party contractors to keep your units looking sharp and up to code; represent your interests in your absence; and so much more.
Your time (and patience) is limited. Even investment property owners with the best intentions are never quite prepared for the amount of time and tolerance it takes to deal with the physical preservation on rental units, let alone to handle the demands of communicating with tenants who are upset or unexpectedly demanding. If you have “better” things to do, such as working, traveling or spending time with friends and family, start looking for a high-quality property manager now.
You don’t really enjoy being an employer. The rental investment business is addictive, and if you’re like many owners, your business focus becomes about investigating new units that come available at a great price. One property can turn to many, and it can happen quickly. Whether you own a single rental space or are attracted to the multi-unit model, when you buy property that you intend to rent, you are instantly an employer. You will have to hire a resident manager, maintenance people, maybe even an accountant. When you contract with an independent property management company, they take over all those pesky employer-related tasks—and you get out of the business of managing people.
Need some more reasons to hire a trusted property manager? Rize Homesource can walk you through all the hidden benefits that come with handing over your property challenges to people who solve these puzzles every day. Just ask us.