One of the biggest decisions you’ll have to make as a landlord is whether to hire a property manager or not. Many landlords choose to manage their properties on their own or with help from an employee, such as a resident manager. But in some cases, landlords need more help and hiring a property manager makes more sense.
With four rental units on your property, you’ve probably been wondering whether it’s a good idea to hire a property manager. Well, property managers can be a huge asset to your real estate business, but they won’t come cheap. There are also other reasons why you might not need or want one. Plus, there are thousands of landlords who currently manage their properties with little effort; they structured their rental business to run on autopilot.
The key to becoming an independent landlord is first establishing the proper processes, making use of the available tools and resources, and creating multiple templates to use repetitively. However, building repeatable business processes is quite a challenge to most people, and it’s not for everyone.
Clearly, deciding whether you should hire a property manager can be an agonizing decision to make. However, it doesn’t have to be that way. What really matters is your own needs, your current situation, your level of commitment, and long-term expectations.
The Role of a Property Manager
Property managers typically interact with applicants and tenants directly on your behalf. The managers will also market and advertise your rental properties, meet with the prospects to host showings, collect the rent, deposit the money to your bank account, and coordinate any repair and maintenance issues on the property. They also serve as the first line of defense when dealing with tenant complaints and will stand by your side when you get sued or need to pursue an eviction.
Furthermore, good Ohio Property Managers should bring their experience and know-how to your property, so that you can have the peace of mind that comes with knowing you’ve left the management of your property in good hands. And since the manager is ideally an independent contractor, you also avoid the hassles of becoming an employer.
Should I hire a property manager for my rental units? Important Considerations:
What’s your experience level in property management?
If you’re a real estate investor who’s just starting out and don’t know the first thing about property management, you’re most likely better off hiring an experienced property manager. This is because learning on the job can be really expensive in the real estate business. For example, taking too long to fill a vacancy or hiring the wrong repairman can easily eat into your potential rental income.
Making mistakes such as being a slum lord for failing to fix the heating in time or being accused of discrimination for not understanding the Fair Housing laws could lead to the demise of your investment. Nonetheless, it important to note that hiring the wrong property manager can also destroy your investment. It’s important to do proper research and perform thorough interviews before deciding the one that’s right for you.