Should you spend the extra money and hire a property manager? This is a tough question for some real estate investors. On one hand, you want to save as much money as possible. On the other hand, outsourcing your landlord tasks can be a huge relief.
Is it worth the money just to get more time to yourself? Absolutely.
Property managers are professional landlords
Few people get into property management in order to become a landlord. However, there's no way to escape your landlord duties - unless you hire a property manager.
Property managers are professional landlords. They have chosen to take care of both tenants and property owners at the same time. Property managers work with landlords to manage their tenants according to the terms of each individual lease.
Property managers are prepared to deal with difficult situations
Being a landlord doesn't seem that hard at first. Although, as time passes, you'll end up dealing with all kinds of situations you never thought would happen to you. Situations like the following can drive an investor crazy:
- Tenants who don't pay rent on time
- Tenants who withhold rent for petty reasons
- Tenants who argue and fight with each other until someone calls the cops
- Tenants who leave trash outside their front door until animals shred the bags to pieces
- Intentional property damage
- Hoarders who collect trash, animals, and rotten food
- Discovering water leaks after they've destroyed the roof and drywall
- Intentional lease violations
- Finding out your property is being used as a meth lab
Investors know these situations are a possibility, but never expect to experience them directly. Investors just want to turn a profit and don't usually want to deal with severe tenant issues. This can create tension when an investor has to deal with problematic tenants on their own.
Property managers, however, are always prepared for - and sometimes expect - these scenarios to unfold.
Property managers want to be landlords
When you love your job, you'll be more effective and efficient. Effective landlords may not enjoy dealing with problems, but being a landlord in general is rewarding to them in some way. Maybe they enjoy working with people. Whatever makes someone want to be a landlord is the factor that will drive their success.
When you don't love being a landlord, you risk slipping into a combative state when your tenants cause problems. Being combative with your tenants will escalate situations and can create more chaos.
There is a difference between the investor mindset and a property manager's mindset. Although both are professionals, investors don't want to be bothered with the daily grind of being a landlord. Investors don't want to field phone calls in the middle of the night or walk into a trashed apartment they have to figure out how to clean.
Property managers don't necessarily enjoy dealing with trouble, but they're willing and prepared to deal with any situation they encounter.
Property managers do most of the work
When you're short on time, or you have better things to do, having a property manager is like having a reliable business partner. Your property manager will handle most of the work while you collect the profits.
You'll still need to do some work, but it will be minimal. Most of your duties will involve checking in with your property management team, going over lease agreements and amendments, discussing evictions, and getting the scoop on how your properties are doing.
Legal problems can be a nightmare
Most investors hope they never have to deal with any legal problems, but that's never guaranteed. You can do everything right as a landlord and still end up in court battling a tenant.
Having a property manager means not having to deal with legal problems. Whether it's a disturbance at the residence or an eviction lawsuit, your property manager will handle everything for you.
Unfortunately, legal problems are common between landlords and tenants. Sometimes landlords earn lawsuits brought by tenants, but not always. Sometimes tenants file frivolous lawsuits in retaliation for rent raises and lease amendments.
Property managers know the law and will deal with problematic tenants legally to protect you from getting sued.
Do you need help managing your tenants? Hire a property manager
Are you feeling stuck managing disruptive tenants? Do you want to file an eviction lawsuit, but you aren't sure how to keep it legal?
A property manager will handle evictions and any other tenant issues within the confines of the law. They'll help you remove bad tenants and fill your vacancies with respectful, reliable people. With reliable tenants, you can return to being an investor just like you planned from the start.