| Are Property Managers Worth the Cost?
Purchasing an investment property and renting it out can provide a healthy income stream. But it requires a lot of hard work that goes well beyond the buying process.
Lots of patience and hard work go into finding the right tenants, maintaining the property, and acting responsibly as a landlord.
Unless you have a lot of time on your hands, you would be well advised to employ a good property management firm to streamline your landlord duties.
A professional property manager will take care of most of the hard work, including:
- Advertising for tenants
- Conducting viewings
- interviewing and screening prospective tenants
- Drawing up leases that meet legal requirements
- Managing property access and keys
- Submitting bond payments
- Keeping up to date with all regulations
- Processing rent payments
- Chasing late payments
- Performing inspections
- Writing up entry condition reports
- Maintaining tax and legal records
- Dealing with maintenance issues and complaints
- Preparing annual financial reports
- And the list goes on!
They provide all of this without the emotional attachment that an owner normally brings to the table.
Your property manager will be a great asset to both you and your investment. Not to mention your sanity. They will save you both time and money.
You need to consider whether you have the time and expertise to manage your own property.
- Do you know all the legalities that need to be adhered to?
- Do you mind being on call 24/7 to handle issues?
- Are you comfortable confronting tenants over complaints or late payments?
Another very important consideration is the 3rd person barrier, that a good property manager provides you when it is time to increase the rent. This alone is more than worth what your property manager will cost you.
Nothing ever fully relieves you of landlord responsibilities. There are some (normally maintenance) decisions that only you can make. But once you have made the decision, it is then your property managers job to speak with the tenants and execute your decision.
Management fees can vary substantially. You will usually pay a small percentage of your rent. You need to do your research and look at reviews.
There are a number of cut price services, but often if you look into the details, you may find that the services you get are quite limited. Find a company who has the experience, good reviews and you feel comfortable with.
They need to take care of the property as if it was their own. If you have a great property manager, it makes Investing in property much easier.