To hire a property manager or to not, that is the question. It’s a decision that many landlords face in their career. While some landlords may have the time and resources to dedicate themselves to owning and managing their rental business, others may feel overwhelmed by the job over time or the idea itself. That’s where property managers come in. There are pros and cons to hiring a property manager, so before you make a decision, let’s answer some important questions on the subject.
What Does a Property Manager Do?
A property manager or a property management company essentially oversees the daily operations of a rental property. A property manager is responsible for marketing the property, collecting applications, screening tenants, conducting routine inspections, guiding property tours, the leasing process, collecting rent and fees, and maintenance issues and repairs. While this may seem like a lot of work, and it is, these are all day-to-day tasks that come with managing and maintaining a rental property.
The Pros and Cons of Hiring a Property Manager
There are benefits and drawbacks of hiring an individual, or a company, to manage your rental property. Consider these pros and cons in your decision-making process.
The pros
- It saves you time and effort. Hiring a property manager means less time you have to spend managing and maintaining your rental property. You’re hiring someone to take over that job for you, saving you valuable time and effort.
- You’ll have someone with management experience to turn to. Although you know the ins and outs of the business as a landlord, it can be very helpful to have a professional property manager to turn to for advertising, leasing, or maintenance help.
- Someone else will find and manage renters and contractors. Forget the days of marketing your listing, finding and screening tenants, and maintaining vendor relationships. Your property manager will handle those tasks.
The cons
- It will cost you. Hiring a property manager comes with a price. These fees will come from your ROI, so assess your finances before you hire out. The fees managers charge vary anywhere from four to 10 percent of the property’s monthly gross income.
- You’ll have less control. Because you won’t be screening tenants, handling maintenance requests, or performing routine inspections on your own, you will have to be okay with letting go of the reigns and trusting the professional you hired to manage and maintain your investment.
- It may not work out. By giving up control, you are trusting this person or company to do things the right way and make sure your investment is bringing in money, but there’s a chance that things won’t work out.
When to Consider Hiring a Property Manager
There are many reasons to hire a property manager, with the most common being:
1. If you’re short on time
Time constraints are common for property owners, especially if being a landlord is you not your only job. Managing and maintaining property is a full-time job, so if you find yourself short on time or bandwidth, you may want to consider hiring a property manager to take over the day-to-day tasks.
2. If you don’t live close to your rental property
It can be difficult to manage a property from afar, especially when it comes to property tours, screening tenants, and handling maintenance and repairs. You can certainly hire contractors in the area and deal with tenants over the phone or online, but it may be easier to hire a property manager in the same area as your rental.
3. If you have too many properties to manage alone
Avoid stretching yourself thin by managing multiple properties on your own. Property managers can bring a professional take on managing and maintaining your investments and help lessen your workload.
4. If you’re struggling to find tenants
As a landlord, it’s important to avoid long-term vacancies. There are risks to leaving a rental property vacant, and if your unit isn’t tenanted, your investment isn’t bringing in any money. Finding good tenants is essential to having a successful rental business, so if you’re struggling to find renters on your own, it may be time to get help from a professional property manager.
Do-It-Yourself Property Management
Property managers take on a lot of responsibility, but if you’re looking to save money and maximize your profits, you can still consider managing your properties by yourself. However, you should be prepared to handle:
Screening and approving applicants
Attracting renters to your property, reviewing applications, and screening tenants will all fall to you if you choose DIY property management. If your property is listed on Apartments.com, you won’t have to do everything on your own. You’ll have access to a full suite of property management tools to help you with these responsibilities. If you choose to receive applications from renters through your listing, you will get a comprehensive look at potential tenants and be able to review and compare rental applications through your account. You will also receive easy-to-read credit reports and reliable background checks from TransUnion, making the application and screening process simple.
Collecting rent and fees
Without a property manager, you’ll have to handle collecting rent, move-in fees, monthly fees, and late fees on your own. However, with the help of these tools, you’ll be able to conveniently receive all payments securely online without the need to chase down physical checks. Collecting rent this way comes with no additional subscription costs or hidden fees for property owners, and tenants will appreciate the ease of paying rent online with their checking accounts for free.
Handling property maintenance and repairs
As a DIY property manager, you’ll be solely responsible for finding trustworthy contractors and handling maintenance issues and repairs. Consider using the property management tools with Apartments.com to help you manage maintenance requests. Your tenants can request repairs through their account, and you can easily update them about maintenance and contractor visits directly from the portal. If you have more than one unit, this tool can help you stay organized in one secure place.
Common Questions About Hiring a Property Manager
If you’re still unsure about whether to hire a property manager, let’s answer some additional questions to help you better decide.
Should I hire an individual or a property management company?
Property managers can be individuals, but they are often employed by a company. Either way, you will pay a property management fee, which is anywhere between four to 10 percent of your unit’s monthly rent. Some property management companies may have a minimum number of properties they accept per owner, so if you only have one property, keep that in mind when searching for a reputable property manager.
How do I find a property manager?
There are several ways to find a property manager or a company. You can start by asking friends, family, or fellow landlords if they recommend anyone. If you don’t find anyone through referrals, you can search online and read reviews or use local apartment associations to find a property manager.
What should I look for in a property manager?
This will vary by landlord and personal preference, but try to find a property manager who is skilled in:
- Communication
- Organization
- Marketing properties online
- Managing finances
- Managing contractors
- Working professionally with tenants and vendors
You will also want a property manager who has knowledge of the real estate industry, prior experience, and excellent references.
How do I vet a property manager or company?
Asking potential property managers the right questions is critical to finding the right fit for you, your tenants, and your property. Before your next interview, check out our top 20 questions to ask before hiring a property manager.
In Conclusion
Hiring a property manager will save you time and effort and lessen your workload. However, this comes with a price. Property management fees will come out of your rental income, so if you can’t afford that financial loss, consider DIY property management instead, perhaps with the help of Apartments.com property management tools.
