Many rental property owners don’t want to give a percentage of their rental income to property managers.
However, serving as the property owner and landlord often means that neither responsibility gets done well. Owning and managing a rental property is more work than most people realize.
If you’re wondering whether or not to retain the services of a property manager, here are three reasons you can’t afford not to go that route.
1. A Property Manager Will Help You Determine the Rent
Do you know how much rent to charge tenants in your rental property? If not, you might charge too much or too little. On the one hand, charging too much will discourage the type of tenants you want. On the other hand, charging too little will leave too much money on the table.
Remember that owning a rental property is an investment. You want to maximize the return on investment. However, the wrong rental strategy will jeopardize your income generation potential.
A property manager will help you maximize your strategy by providing insight on rent. Don’t make the mistake of consulting a property manager in a different market. You need the expertise of a service in your area. So, if you own an investment property in San Marcos, Texas, hire a San Marcos property management firm. A local property manager will understand the dynamics of the real estate market in the community and can help you set the rent at realistic levels.
It’s not just about seeing what other property owners charge. A property manager can give you the right information so you can decide how much to charge tenants for rent.
2. A Property Manager Will Help You Avoid Problem Tenants
A property manager will conduct an extensive tenant screening process so you lessen the odds of handing over the keys to someone you shouldn’t. By requesting that would-be tenants forward recommendation letters from previous landlords, you can learn a lot. The best way to determine how a tenant will treat you is to see how they’ve treated previous landlords. If an applicant balks at providing information from previous landlords, you can disqualify them.
You can also count on a property manager to check credit scores, proof of income, and other things that can factor into finding the right tenants and avoiding the wrong ones.
All it’ll take to sour your rental property ownership plans is one nightmare tenant who costs you thousands or tens of thousands in property damage. They may also refuse to pay rent, which will be even more distressing if you’re paying a mortgage on the investment real estate.
Hiring a property manager can greatly reduce the risks of renting to the wrong people. But they’ll do so without violating laws that could land you in legal hot water.
3. A Property Manager Will Advise About Upgrades
Do you want to increase the rent for your units? A property manager can be a godsend if you want to get recommendations on upgrades that could justify charging more for rent. Remember that property managers understand the rental market dynamics in their areas. So they know what tenants want in their rental units. You can consult with a property manager to learn how to make your rental property more attractive on the rental market.
Hiring a Property Manager Is Money Well-Spent
Based on these three points, you can see that property management firms bring plenty to the table. While some charge a flat rate, others request a percentage of rent collected monthly. Consider, as well, that these service providers offer a range of services, so you can pick and choose based on how much or how little help you require.
However, finding the right property manager can make owning an investment property less stressful.