Investing in rental properties is a great side hustle to bring in extra dollars, but it can also be a full-time gig if you plan to expand from a single property to several. It's not as simple as just keeping tenants, though. There also many other tasks you must attend to, including maintenance, repairs, and collecting rent. This is where a property management company can help. The following can help you decide if it is time to hire a residential property manager for your rentals.
How many and what type of properties do you own?
If you own only a single property, and it only houses a few tenants, you may not need to hire a property manager yet. This is especially true for single family dwellings where the tenant is in charge of most general maintenance, such as mowing the lawn or changing furnace filters. You want to consider property management when either the amount of properties or the amount of tenants increases. So if you own several rental homes or a single small apartment complex, it is best to outsource some of the work to a property manager. Otherwise, you will find yourself being run ragged to keep up with all the work.
Where are your properties located?
Sometimes it makes sense to hire a property manager even if you only one or two properties. If you don't live in the same city as your rentals, it can be difficult to deal with many issues, such as emergency repairs or issues with collecting rent. Having a local property manager means you have someone in the area available that can work directly with repair and maintenance contractors, deal with tenant issues, and advertise for new tenants when necessary.
Are you a people person?
Owning rentals means dealing with people, and it isn't always pleasant. Not only do you need to interview prospective tenants, you also need to handle tenant complaints and deal with issues such as late rent. There may even be cases where you have to take tenants to court to collect damages or rent payments. If you aren't good at saying no or dealing with confrontation, it can be well worth it to have a property manager to handle all tenant relations.
Do you like "grunt" work?
If you are the type of person that actually enjoys landscape work or fix-it type projects, you may not want to outsource property management completely. It is possible to play to your strengths and have a property manager do the rest. For example, your property manager could handle everything but the landscaping if you still want to mow the lawns. Or, you can continue to interview and choose your own tenants, but allow the property manager do the rest. Contact a local property manager for more information.
To learn more about residential property management, contact a company like Foreside Real Estate Management.
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