It’s true what you’ve heard — property managers can be a huge help for landlords. However, a property manager can be expensive. Before deciding if you want to hire a professional property manager, let's review what a property manager is and what they can do for you.
In this article, we'll cover:
- What Is a Property Manager?
- When You Might Want to Hire a Property Manager
- Managing a Rental on Your Own
- How Apartments.com Rental Tools Can Help
What Is a Property Manager?
The name is pretty self-explanatory here — a property manager manages property. But what do they do on the day-to-day? A property manager is an employee hired by a landlord to manage the everyday work that goes into a rental property. A property manager:
- Sets the rent for the rental property
- Collects rent from tenants
- Adjusts rent according to competition and market value
- Advertises property to find tenants
- Screens tenants
- Deals with the leasing process
- Handles complaints and emergencies from tenants
- Deals with move-ins and move-outs
- Handles evictions (if it comes to that)
- Schedules maintenance and repairs to the rental property
- Deals with finance and budget aspects
- Keeps things organized and running smoothly
If you’re a landlord, then you’re balancing all of these responsibilities on your own. If things are starting to get hectic, you may want to consider hiring a property manager. Not sure what you want in a property manager? A few qualities will make one stand out from the rest.
Qualities of a Property Manager
The most important aspect to consider when hiring a property manager is their attitude. You want someone who is dedicated to keeping the line of communication open, while being able to maintain the property without contacting you frequently with questions and concerns.
Their main purpose is to assure you that your investment is being properly taken care of – not only your investment in the property, but your investment in the property manager.
When You Might Want to Hire a Property Manager
A major factor to consider is budget. If you feel that a property manager would keep you from getting a positive return on your investment (your rental property), then it may be best to continue to do the work yourself. But if you have the funds, and you lack time (among other things), then consider relying on the support of a property manager in one of the following scenarios:
1. You have too many properties to manage alone.
Many landlords can only handle a few properties at a time – so if you’re managing five to ten (or more) properties on your own, you may want to consider gaining the assistance and expertise of a professional property manager. You’ll have peace of mind knowing that your properties and tenants are in good hands.
2. You live far from your properties.
Do you live more than an hour from your properties? If so, it may be in your best interest to speak with a local property manager who has quick and easy access to the area where your rental property is located. If you’re a long-distance landlord, then you will need to have contacts within the area of your rental property for any maintenance issues or emergencies that arise with the property or tenant.
3. You’re not very familiar with the business.
If you don’t enjoy keeping track of every detail of a business, or if you don’t feel secure enough in your knowledge of managing rental properties, then property management probably doesn’t suit you. But that doesn’t mean you can’t own the property – simply hire a property manager who can help you with the parts of the job you prefer not to do (or aren’t comfortable doing), such as marketing the property, screening tenants, collecting rent, dealing with maintenance, etc.
4. You’re too busy.
Perhaps being a landlord isn’t your full-time job – if you have another career, then you may be too busy to be both the owner and manager of your rental property. Lessen your stress by hiring a professional property manager who can help you keep things in order.
5. You have the funds to hire a property manager.
There are some properties that you probably don’t need (or can’t afford) to hire a property manager for. But if you feel that you have a surplus of funds to do so without going underwater, then it’s probably a good idea to hire a professional. You’ll feel a weight lifted off of your shoulders knowing that your rental property is being managed efficiently. Property managers or property management companies can charge various amounts for their services. You can expect to pay between 8-12% of the monthly rental value of the property, or you may be charged a flat monthly rate depending on the value of the property.
6. You’re struggling to fill your vacant units.
If you’re having trouble filling your units, and you find that they are often vacant despite your efforts, then you’ll likely benefit from the marketing techniques of a professional property manager. They can help you advertise your property and get more tenants interested in and applying to rent your unit.
Managing a Rental on Your Own
A professional property manager is a luxury. Having someone else handle the day-to-day can relieve some of the stress that comes along with managing rental properties. However, if you decide you want to manage your rentals alone, there are some big benefits to this.
1. You'll save money.
By managing the property yourself, you can save on management fees, which typically range from 8% to 12% of the monthly rental income. Rather than paying a professional property manager, you can keep that money and use it for other things.
2. You have direct control.
Handling everything on your own means you make the decisions. You have full control over all aspects of your property, from tenant screening to maintenance decisions.
3. You'll maintain that personal touch.
Many renters choose private landlords because they like dealing directly with the property owner. Managing your property yourself allows you to build a direct relationship with your renters, which can lead to better communication and potentially longer tenancy.
4. You have more flexibility.
When you hire a property manager, you'll need to keep them informed of decisions, which can make getting things done more complicated. When you handle your property on your own, you can make decisions quickly without needing to consult a third party.
How Apartments.com Rental Tools Can Help
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If you decide to manage your rental property on your own, Apartments.com offers a suite of rental tools that can simplify the process. From listing your property to screening tenants and from collecting rent online and managing maintenance requests, you can streamline many of the tasks associated with property management, making it easier to stay organized and efficient.
This article was originally published on September 13, 2019, by Megan Bullock.
