Income properties can be a great way to build long-term wealth, and there are two major routes to get to this end; managing the property yourself or hiring a professional property manager.
The reality is that both routes can lead to success, but there are definite advantages and disadvantages to each approach. Hiring a property manager may cost you a little bit more each month, but it can save you time, energy, and money in the long run. On the other hand, managing your property can be a more hands-on way to control your investment, but it may also cost you more if you lack the expertise.
Here, we will go over the pros of both approaches so that you can decide which route is best for you and your investment.
5 Reasons Why You Might Want to Consider Hiring a Professional Property Manager
A property manager is a professional responsible for the day-to-day management of your rental property, including tasks such as marketing the property, screening and signing tenants, collecting rent, handling repairs and maintenance, and responding to tenant concerns. Here are some reasons why you might want to consider hiring a property manager:
You Don’t Live Near the Property
Whether you have purchased an investment property in another city or suddenly need to relocate for work, it can be challenging to manage a property from afar. A property manager can act as your local representative, taking care of the day-to-day tasks so that you don’t have to worry about them.
Experienced private client specialists typically offer bespoke vacant management services that would suit your needs if you’re an absentee landlord. Your dedicated property manager will take full responsibility for your investment while away. This service includes regular inspections, communicating with contractors, and keeping an eye on the local market to ensure your property is being rented at a competitive rate.
You Don’t Have the Time to Manage the Property
Even if you live near the property, you may not have the time to dedicate to managing it. Suppose you already have a full-time job or other time-consuming commitments. In that case, finding the time to market your property, collect rent, coordinate repairs, and handle all the other tasks that come with being a landlord can be difficult. A property manager can take on all these tasks for you, so you don’t have to worry about them.
Dealing with tenants can be a hectic and time-consuming task, especially if you have multiple properties, or you are unfortunate to have problem tenants. In these cases, it is often best to leave your property’s management to a professional with the time and experience to deal with these issues effectively.
You Don’t Have the Expertise to Manage the Property
Managing a property is not as easy as it may seem. There is a lot of paperwork involved, from marketing the property and screening tenants to signing leases and collecting rent. There are also several legal regulations you need to be aware of, such as landlord-tenant and health and safety laws.
If you don’t have the expertise to navigate all of this, it can be easy to make a mistake that could cost you a lot of money. A professional property manager can handle all the paperwork and ensure everything is done according to the law.
You Want to Avoid Legal Issues
Speaking of knowing the legal regulations, one of the main benefits of hiring a property manager is that they can help you avoid legal issues. Not only do they know the relevant laws and regulations, but they also have experience dealing with tenants, which means they are less likely to make a mistake that could result in a lawsuit.
You Want to Maximise Your Profit
This might sound counter-intuitive on the surface, considering that you will have to pay your property manager. However, when you look deeper, you will realise that all the benefits we have listed so far (and those we have not) will contribute to boosting your bottom line.
By taking on the tasks of marketing, screening, and signing tenants, a property manager can help you find high-quality tenants who are less likely to cause damage to your property or default on rent. They can also help you avoid legal issues and increase the value of your property through regular maintenance and repairs. Ultimately, these benefits will outweigh the cost of hiring a property manager, resulting in more profit.
With this in mind, you might want to explore the other side of the coin; trying to do it yourself.
5 Reasons Why You Might Consider Managing Your Property
Self-management, in this case, means that you will be wearing two hats – that of the property owner and property manager. You will be solely responsible for all the tasks of being a landlord and property manager. Here are some reasons you might want to do this:
You Want to Save Money
The most apparent reason why you might want to manage your property is to save money. If you can find high-quality tenants and effectively manage the property, you will be able to keep the money you would have otherwise spent on a property manager.
You Want More Control Over Your Property
Since you will do all the day-to-day tasks related to your property, you will have more control over how it is run. This includes everything from marketing and screening tenants to maintaining the property and dealing with repairs.
You Want to Gain Experience
Another reason you might want to manage your property is to gain experience. If you are new to being a landlord, self-management can give you a crash course in all aspects of property management. This can be helpful if you are planning on expanding your portfolio in the future.
You Want to Keep a Close Eye on the Property
If you live close to the property or are willing to visit regularly, self-management can be a good option. This way, you can keep a close eye on the property and ensure everything runs smoothly.
You are Willing to Put in the Time and Effort
Managing a property is not an easy task. There is a lot of work involved, and it can be time-consuming. If you are willing to put in the time and effort, self-management might be a good option. After all, as the property owner, we bet you will be highly motivated to do your best to ensure its success.
These are just some reasons you might want to manage your property yourself. Ultimately, the decision comes down to you and what you are most comfortable with. However, if you have decided to hire a professional property manager, consider:
Chambré: The Private Client Property Specialist
At Chambré, we understand that your property is a valuable asset that needs to be well-protected. Our team of experienced property managers is dedicated to providing top-notch services. All our property management services are tailored to meet your specific needs and requirements. Contact us for more information.
- What’s the main disadvantage of self-managing the properties?
The biggest downside of self-managing is that it can be very hectic and time-consuming. While being the property owner motivates you to do your best, it’s essential to know that it does not always mean having extra time on your hands. If you are not able and willing to put in the extra time and effort, self-management might not be the best decision for you.
- How can a professional property manager improve your bottom line?
A professional property manager can help improve your bottom line in several ways, including:
- Screening tenants – A good property manager will have a system for screening tenants. This can help you avoid problem tenants and minimise the risk of property damage.
- Maintaining the property – A property manager will ensure that the property is well-maintained, which can help you avoid costly repairs.
- Dealing with repairs – If any repairs need to be made, a property manager will take care of them promptly and efficiently.
- What’s the main objective of a professional property manager?
To minimise expenses and maximise income.