Although the stock market is America’s favorite investment market, real estate is fast catching up, and for good reason. Real estate is a low volatile investment and is a source of a steady income. If you’ve invested in residential property, you’re probably enjoying the benefits.
However, investing in real estate comes along with its fair share of challenges. You need to manage the property properly, a task which you can delegate to a property manager. But at what property management cost?
Continue reading to learn whether hiring a property manager is worth the cost.
Do You Have the Time to Manage Your Property?
When you have a residential property you’re letting out, anything can happen at any time. A pipe could start leaking. There could be an electrical fault….
You have to be available to attend to these issues; otherwise, you’ll have dissatisfied tenants. If the issues persist, they can move out and your property won’t be attractive to new tenants.
So, do you have the time to manage your property? If you’ve got no other job and live near your property, you certainly have a good case for not seeking the help of property management services. You’re always there to resolve any arising issues.
However, if you’re ever busy with other tasks or you live far away from your investment property, hiring a property manager is necessary.
How Many Properties Do You Own?
The vast majority of real estate investors have a single property, which is typically easier to manage without hiring a professional. But if you’ve invested in multiple properties, you might not be able to manage them properly, even if you’ve got adequate time on your hands.
An extensive property portfolio calls for an experienced property manager. They will not only improve tenant relations but also ensure high tenancy rates.
Do You Have Property Management Expertise?
Let’s say you have the time and one or two properties on your portfolio. Does it still make financial sense to hire a property manager?
Well, it depends on whether you have the right property management knowledge and experience.
You see, managing an investment property isn’t just about responding to a tenant’s queries. You need to know how to, for instance, screen a tenant without violating the relevant housing laws. You need to know how to find quality tenants who won’t give you trouble.
As such, if you don’t have sufficient property management expertise, it’s best to leave the job to the professionals. Sure, you’ll have to pay for their services, but the return on investment is impressive. You’ll rest assured that your property is in the best hands and you can focus on expanding your investments.
Are Property Management Costs Worth It?
Property management costs can unsettle any real estate investor. While you might want to earn as much as possible from your property, hiring a professional to manage it is the best move. Your property will get the best tenants and it will maintain high tenancy rates.
Browse through our blog for more property management insights.