Some real estate investors give enough thought to the property they are about to invest in. They know that the market is not always stable and so they are prepared with the hassle of finding tenants that will keep income flowing. Some novices do not factor in the stress involved in managing property or even keeping income consistent for a whole year, which is why they need to consider hiring a property manager.
So, do you need a manager for your real estate?
- Size of your Portfolio
How many properties do you own? The more you have, the better off you are letting someone manage them for you. A lot goes into seeing that every property is at its best and so you will need to dedicate a considerable amount of time to each of them. It also matters how far apart they are.
The distance also matters, meaning that properties located far away fromwhere you live may be difficult to manage at a distance. A property manager is mandated by contract to stay close by and be available at all times when needed.
- The Stress Involved
Imagine if something went wrong in one of your properties that affected three tenants. Now, another property develops a problem that affects three other tenants all on the same day. Your day will be spent trying to resolve each of their problems and assuring them. If you have time to personally attend to all those issues in top of your daily commitments, then you will be just fine. If the stress is too much to handle alone and it probably will be, then you will need a property manager.
- Finding Valuable Tenants
Building rental blocks is just part of the equation. Finding tenants that will stay for more than a few months is another deal all on its own. Real estate managers have databases of tenants and will have your rental houses occupied in half the time it would take you.
- Legal Mess and Financial Reports
When you hire a property manager, they will be responsible for legal matters affecting tenancy and they also give you detailed financial reports that you will use to file your returns. Landlord-tenant regulation is always changing and so you may need a real estate lawyer in your payroll. Property managers are always dealing with tenants and so you never have to get involved directly.
- Timely Payments and a Clear Conscious
Tenants find it easier to twist a property-owner’s hand that they would a property manager. Managers are well versed with the laws and will know the legal way to get tenants to pay timely. They are also approach evictions legally and save you the trouble. This way, you remain the invisible good guy that will never have to hear a tenant’s pleas during evictions.
Property managers take a fraction of rental income but leave you to go about your life without ever having to worry about your real estate investment. With them, your investment will yield consistent returns.