As an investor, you want to spend your money to make more money. When you apply this principle to real estate, you want to be sure that you are paying as little per month in operating costs so that you can capitalize on the income from the rents. Does this mean you cannot manage your own investment property?
Of course not. But why would you want to? Even though hiring a property manager will cost you money it is often worth every penny. There are many jobs that have to be done daily never mind monthly or in the middle of the night when a pipe bursts.
You do have a right to manage your own property but there are many tasks you have to consider taking on in addition to the work you already do to manage your portfolio.
As a manager, you would need to be available to tenants all hours of the day.Some repairs just do not wait until the hours of nine to five to get done as is the case with an overflowing toilet or a burst pipe.
Hiring A Property Manager
Then there are the routine jobs that must be done. The lawn must be cut, garbage cans put out to the curb and taken back. The courtyard or laundry room must be cleaned and maintained. If you have a fitness room in your facility, that has to be managed, too. If the property has a swimming pool, it’s the same thing only you would have to clean the pool and take care of keeping the water levels up to par.
You would also need to collect rents and advertise or show the property to prospective tenants. In the event someone fails to pay their rent for a few months, you may even have to write and mail out eviction notices.
Some investors who own one or two properties probably could skip hiring a property manager. But if you own apartment complexes or multiple properties, you will want to hand the job over to an experienced property manager.
Aspects Of Renting Properties
These individuals and companies have the experience and staff to handle all aspects of renting properties. They have relationships with landscape companies, plumbers, electricians, roofers and laundry machine operators. They know who to call and when no matter what need arises on your property. A management company may cost about 10 percent of your rents but they are well worth it in terms of the work, the time and the money that they save you.
For some investors, it can be worth it to manage the property by themselves. If they own a small property or very few properties, it might be manageable to handle all aspects of renting them and maintaining them. If you are on the premises then it makes it even more convenient to handle these jobs as they come up during the day, the week or the month.