What are the benefits of using a Property Manager?
Whether you're a first-time landlord or an experienced property investor, managing your rental portfolio can be a full-time job.
For some people, hiring an experienced property manager to look after their investments can be a great option that pays for itself in time, energy and money saved. What's more, the cost may be tax-deductible too - ask your accountant.
Here are 3 reasons why using a property manager can be beneficial to you.
1. Property managers hold a wealth of experience.
If you're a property investor who is just starting out, learning as you go can potentially be an expensive exercise. Hiring the wrong contractor, finding suitable tenants, or charging rent that is not in line with market rates can quickly eat into your potential income.
Property managers have extensive experience dealing with the different kinds of issues that can arise in rentals, as well as trusted contacts for various different service providers (plumbers, electricians, and so on). They will have access to comparative data about the market - ensuring that the rent that you charge accurately matches the market rate.
Another important consideration is that property managers will be up-to-date and informed on complex legal changes regarding rental properties and tenant rights.
2. Property Managers can save you time.
Time is money, and managing a rental property takes time. Regular communication with tenants, keeping track of rental payments, performing inspections, finding tenants and carrying out extensive reference checks, maintaining thorough records, and arranging for repairs and maintenance can all be time-consuming.
If you have other full-time commitments, it can be a challenge to give your rental investments the time they need. A property manager can free you from the day-to-day responsibilities of your investments so you can focus on other priorities.
Don't forget that as you increase the number of rental properties you own, so will your responsibilities as a landlord and the more likely you are to benefit from a property manager.
Whether you own one investment property or are adding to your portfolio, a property manager can assist and guide you through the complicated process.
3. Property managers act as a buffer between you and the tenants.
The way you handle rent collection and late payments can be the difference between success and failure as a landlord. Collecting rent on time is the only way to maintain consistent cash-flow, and your tenants need to understand this is not negotiable.
By hiring a property manager, you put a buffer between yourself and the tenant, and allow them to be the "bad guy" who has to listen to excuses, chase down rent, and if necessary, evict the person living in your property.
Property managers have an advantage because tenants realise that they, unlike the owner, are only doing their job and are obligated to enforce the lease terms. Many property managers will tell you that it is considerably easier to manage other people's units rather than their own for this reason.