As an owner of an investment property, you are probably all about saving money. But lessons learned in business teach us that there is a time for pinching pennies, and a time when we should not
A professional property manager is worth their weight in gold, for a number of reasons:
- Property managers can be objective, when it comes to screening possible tenants. It is rare that your manager will fall for a hard luck situation. Property managers assess the income, debt, and other issues that your tenant has. They will make an educated assumption, NOT BASED on emotions! They will help you find tenants that have a greater likelihood of paying rent!
- Your property manager can coach you with regard to price, and has sometimes a greater ability to find tenants for you. He likely manages multiple properties, and has a system of advertising already set up.
- Professional property managers play by the rules. Because it is their vocation, they are often available to act when needed. And know the current standards and laws required of them.
- Property managers have special accounts set up for holding escrow, and accounting for interest which under certain circumstances must be paid to the tenant.
- A good property manager has a very comprehensive lease agreement. And will keep you from worrying wether or not you have included all necessary details on your lease. That offers you far more protection as a landlord than using pre-printed forms online.
- Thorough inspections, both before move in and upon move out, are essential to a smooth transition. Having an experienced, objective 3rd party to conduct these inspections and insure that the appropriate follow up paperwork is completed is a must.
- And finally, property managers have a wide variety of loyal service men and women, with whom they have good relationships. They know what contractor, or carpet guy to call, when you are in desperate need of repairs. They have invested time in finding quality craftsman, who will do the work they are paid for. And if you have ever dealt with a poor quality contractor, you will appreciate leaving the hassle on your property managers shoulders.
Your property manager will probably charge you 10 to 15% of your monthly rental income. If you value your free time, night times, and bottom line, a property manager might be worth your investment.