Are you avoiding hiring a property manager because you think they are too expensive or don’t really do much?
As a homeowner, property management can be overwhelming. Even if you only have one or two properties–complaints and vacancies can start to eat up your spare time. What may have started as a passive income can quickly escalate to the burden of a second full time job. So why not hire a professional manager? While I’ve heard a lot of reasons why you should not hire a professional, most are uneducated myths.
Here are the top 5 property management myths and the answers to debunk them:
MYTH: No One Can Take Care of My Property Like I Can.
I understand! A feeling that no one will protect your investment and care for your home like you will is a valid concern. However, a professional management company cares about your home. They want to protect your asset and even help add value to it if possible. With a fresh perspective and unique knowledge of the market in your area, they may suggest upgrades that can add to the value. Property managers are also aware of market trends, pricing, and strategies that may help to increase your market potential and the monthly income you can generate.
MYTH: I Can’t Afford to Hire a Property Manager.
Have you considered how much it’s costing you currently without a property manager? How much is your time worth? Ten dollars an hour? Fifty? One Hundred? Are you being pulled away from your day job, family activities, and vacation opportunities because of your rental property? While a property manager does cost money, it is normally a minimal amount when you look at the big picture. A property manager would be able to fill your vacancies faster, deal with late night maintenance calls, and utilize their vendor contacts to get you the best pricing on repairs.
MYTH: Renters Will Destroy My Home.
It is true that renters can be hard on a property, but a professional management company would only rent to the best possible residents. This doesn’t always prevent residents from causing damage. For this reason, a professional manager will conduct regular evaluations of the home. This allows for them to assess every area of the home and ensure that the resident is abiding by the terms of their lease and caring for your asset. Minor problems can be caught before they become major ones and resident damages can be tended to and remedied immediately. When the evaluations are complete, you receive a full detailed report of the condition of the home, giving you peace of mind.
MYTH: I am a Good Judge of Character, I Can Find the Best Tenants for My Home.
While you may have had good success in the past finding residents for your home, renting out your property is a huge liability. Are you setting selection criteria for your applicants that meets Federal Fair Housing and HUD guidelines? Are you conducting credit checks, criminal background checks, employment verification, and checking for previous eviction history? A professional property management company holds high standards of legal compliance. They are familiar with Federal Fair Housing laws, Housing and Urban Development standards, the American Disabilities Act, and all other local and state laws in your area. They have set selection criteria and high qualifying standards in place that ensures that you receive the best possible resident in your home.
MYTH: Property Management is So Easy, I Could Do it in My Sleep!
Parts of property management are easy! That’s true. But what about evictions, collecting payments on a property that is behind on rent, angry residents, late night emergency maintenance calls, residents who are not compliant with the lease terms, and the many other daily struggles? It can be hard to be the bad guy all the time. Residents are not your friends, they aren’t understanding when you are too tired to deal with their problem. They don’t care if you’re busy right now. Sometimes they complain so much that it gets difficult to want to even answer the phone when they call. That’s what a property manager is for. Let us deal with all of the drama and chaos, so that you don’t have to.
With 20+ years experience in residential and investment real estate sales,property managementand consultation, Matt is an Ohio licensed Realtor currently working as Sales Manger atReal Property Management.Contact him directly at[email protected]or on twitter