After a certain point of financial stability and success, most people begin to consider ways to invest or make more money with what they have. Some turn to stocks, high-interest saving accounts, or risk it all in an attempt to start their own business. However, many people find themselves in the natural position of owning investment property. This often occurs simply by buying a home earlier in life, then buying a better one later on without selling the first. With a renting family in the now-secondary property, this creates a reliable and mostly hassle-free form of income that can serve to build up a nest egg and be used to buy additional investment properties. Of course, as your holdings increase, so too do your duties as a landlord. While it may have seemed OK to manage repairs and maintenance for a single additional property, if you're starting to feel the stress of juggling several tenants and properties, it may be time to hire a property manager.
1) Bringing a Professional Approach
The first thing a property manager brings to the table is a professional approach to taking care of your property. Without emotion or previous attachment, they can make decisions that will be best for you, your tenants, and the property itself. Professional property managers know the ins and outs of the rental business, can quickly spot the urgency and severity of repair needs, and can make sure that every stage of the rental process is handled smoothly. From listing the property and seeking tenants to ensuring that security deposits are always paid and returned in a timely manner, your property manager can easily take over most of your landlord duties to the benefit of everyone involved.
2) Reliable Business Contacts
Good property management means knowing who to call in an emergency and experienced managers have had more than a few encounters with the available local services. They are well acquainted with the plumbing, appliance repair, and handyman businesses in the area and know who can be relied on to provide high-quality service in the desired amount of time. This ensures that you and your tenants never have to put up with no-show services or shoddy work because your property manager has already vetted contacts in the industry.
3) Covering Your Assets
While it would be great if being a landlord was all about collecting rent checks and occasionally sharing a batch of fresh-baked cookies, this simply isn't the case. Even if your tenants are perfectly nice people, there are a number of legal precautions that need to be taken care of in the process of signing leases, maintaining the properties, and dealing with departing tenants. Property managers can help you make sure that your lease is more than just a boiler plate and truly covers your bases. You may want special clauses for custom fixtures, pets, or lawn care and it's always important to specifically enumerate what is and is not the responsibility of the tenant, property manager, and landlord when it comes to taking care of the property. This will both keep your tenants happy and avoid unnecessary lawsuits.
4) Dealing with Troublesome Tenants
Not every tenant is ideal and some of them turn out to be much worse than you thought on lease-signing day. Many tenants mean well but still manage to cause trouble by accidentally breaking appliances, having out of control pets, or simply expecting too much from your end of the bargain. Property managers have seen it all and can help you smoothly handle troublesome tenants from the belligerent to the overly apologetic. They will professionally handle your renters so that you never get overwhelmed or have to feel like 'the bad guy'.
5) Hands-Off and Hassle Free
The best thing about hiring professional property managers is that you no longer have to do the task. No more midnight calls about broken plumbing or complaints about icy sidewalks. No more explaining why tenants can or cannot have a pet or worrying about who does or does not get their security deposits. With a property manager, your tenants will be well taken care of and you can rest easy, having turned your investment property into truly passive income.