If you have worked enough in your life to win more than one property, then you have a fair share of the idea that owning properties and maintaining them is not at all easy, especially if they are located far away.
Managing a property requires time and commitment. Not only do you have to look after the properties, but you also have to deal with legal issues and community problems that may arise.
If you can easily manage your multiple properties, then it's great. However, if you find it difficult, it is better to hire a property management company.
Here are the questions you should ask yourself if you want to know whether you need a property management company or not.
Is your rental property from your home?
Distance between the properties is the biggest reason people hire property managers' services instead of managing their properties by themselves.
As we have said above, owning a property comes with its own set of challenges. Sometimes these are legal; other times, there are local, community-level problems that must be sorted.
Moreover, if you have rented your faraway property, it becomes difficult for you to address tenants' complaints, emergency maintenance needs, and collect rent.
Simply calculate the cost of reaching your property and the time spent on it. If you think you can save substantial money and time by hiring a property manager, then go for one.
Number of properties
Managing a single property is relatively easy, and the proprietor can do it on his own. But, in the case of more than one property, then the task becomes challenging.
If those properties are rented, then there are different tenants of each property to deal with. The maintenance issues will also create a burden.
Having a hard time with documentation
Buying and owning a property is not an easy task. It involves tons of paper works, and contracts upon contracts to be signed. Thus, looking for property management in advance will help you review tons of documents and stay on top of all transactions.
These documents are extremely important as any lacuna in them can cause serious trouble for you and your property.
Moreover, different cities and counties have housebuilding laws that need to be followed so that no part of your property violates these laws, and everything is done under the law.
It gets tricky to keep track of all the building laws in different counties. To overcome this, owners should hire a property management company or an individual property manager who belongs to the area where your property is.
For example, Calgary has different building laws than, say, Edmonton. So, if you own a property there, you can seek property managers or realty companies in Calgary that can help you manage your property and take care of the legal aspects according to local laws.
Are you finding it difficult to find tenants?
The property managers or realtors based locally can help find and screen tenants and handle routine maintenance and repair works.
If you rent a property, then as an owner, it will be difficult for you to find new tenants, meet them, screen them and find if they are suitable. This is a time-intensive process, and it is hard to find a schedule that works for both parties.
Another problem which local property managers can help with is that of repair and maintenance works in your property. A local person has resources and contacts to get the task completed quickly and at an economical price.
Local realtors and property managers have contacts that come in handy. Otherwise, you'd have to find a repairman to get the work done on your property.
Can You Afford to Hire a Property Manager?
The most important question to ask yourself before opting for a property manager or seeking the service of a property management company is: can you afford them?
Maintaining a property is not cheap. It requires routing upgradation and maintenance to keep its value intact. So, it is natural to think about the cost when hiring someone to manage it.
Here is what you should consider:
- Is the cost of hiring a property manager is less or more than what it cost you to take care of the property?
- Will it save you both time and money to acquire the services of a property management company?
Property managers usually charge between 5% to 10% of the rent proprietor gets from tenants. If you find that it is cost-effective and saves you time to hire someone to look after your property's affairs, then you should hire them.
Are you unable to handle your tenants?
Property owners who live far away from their properties often find themselves in a crosshair when it comes to handling the tenants and dealing with their issues.
The biggest issue in the tenant-owner setup is that of the rent. If the tenant is responsible, the owner gets the rent on time, and the arrangement works smoothly. However, problems arise if the tenant causes unnecessary delays in rent payments.
In that case, it gets difficult for owners to travel to their property every month to sort out issues with tenants. Tenants sometimes take advantage of the fact that the owner lives far away from the property, and they cause unnecessary problems for them.
In this case, a property manager could prove quite handy to sort out these issues swiftly and act on your behalf when it comes to rental disputes.
If these disputes are frequent between you and the tenant, then getting the services of a property management company saves you time, money and gives you peace of mind.
Having multiple properties is a secure investment, and giving them on rent also ensures you have a steady stream of passive income. However, property management has its own challenges. You will come across several legal and logistical challenges to manage a property that is not in your vicinity.
In this case, get the service of a property management company to streamline the process and ensure that you don't have to personally oversee every minor issue with your property.