Most landlords prefer to engage property managementfirms to help them manage their rental property. By doing so, they relieve themselves of the responsibility of having to deal with those who rent their property. But, while this helps ease the management burden, there are many myths that landlords have about the property management business.
These myths are easy for professional property managers to debunk but can be quite difficult for new managers and landlords to note. If you’re new to the property management business, here are five myths you need to be aware of:
Property Management is Costly
When landlords think of getting professional managers to manage their properties, the first thing that comes to mind is the cost of the service. Most landlords think that property managers charge hefty fees that only large complexes can afford. Because of this myth, many landlords avoid engaging property managers because they fear it’ll significantly reduce their rental income.
While it’s true that a percentage of the income will be deducted to pay for the property management services, the fee is highly competitive and will often reflect the services being offered. In many cases, property managers protect the investments made by landlords and ultimately help them save money by eliminating the need to hire contractors.
Managing Properties is Easy
When you choose to manage your own properties, you have to deal with homeowners, vendors, renters, and handle an array of property issues that pop up from time to time. While this is a good strategy, it works efficiently when you’re only managing a few units. If you have tens or hundreds of properties to manage, the task gets complicated and the stress that comes with the management demands can be overwhelming.
This is where professional property managers come in handy to help. Managing properties requires one to have certain skills and doing it by yourself can be difficult. Due to the complexity of the job and the skills required, property management is a full-time job in many countries. Landlords who prefer to manage their properties can join forums where property managers interact with landlords to learn and share their experiences.
No Effort is Needed from the Landlords
There’s a common myth that once a landlord hands over their property to a property manager, they have no role in managing the property other than receiving rental income.
This is not necessarily true because property management doesn’t provide passive income. On the contrary, property management is a tough, competitive field that requires commitment and hard work.
As such, property owners have to put some effort to keep their income flowing. Both property managers and landlords have to actively play their roles in keeping tabs on property trends and landlord skills. Landlords also ensure their properties maintain their appeal by renovating and maintaining them often.
Property Managers Don't Screen Tenants Well
There’s a common myth that property managers are more focused on keeping the units they manage occupied than they’re about keeping them in good condition. Most landlords hold that the property managers would even accept bad tenants just to maintain a high occupancy rate.To them, having bad tenants occupy would result in damages to their properties.
This myth is fueled by the belief that the income of property managers is based on maintaining tenants. But this is not necessarily true. Property managers know that screening tenants protects property and saves them money. They have the requisite training to screen and find tenants who are respectful in the way they use rented properties.
Property managers also have the ability to routinely monitor the state of your property and take appropriate actions to ensure it remains in good condition.
When it comes to onboarding new tenants, property managers can help you expedite the process of approving qualified tenants to keep your business moving.
Landlords Have No Say in Picking Contractors
Most landlords think that once they hire a property manager, they’ll have no say when it comes to picking contractors.
While property management firms will often have reasonably priced contractors available, most of them are open to adjusting contractual terms the way property owners wish to have them. This means that by hiring property managers, landlords will not be giving up their rights to approve contractors that the managers wish to engage.
Real estate is a rewarding long term investment. However, the five myths discussed above can rob property owners of the returns they deserve by keeping them from utilizing professional property management services.
Contrary to these beliefs, having a professional management firm run your real estate property can help you save money and inject the efficiency you need in your property business.
If you decide to hire a property manager for your property, ensure that they share the business goals you have in mind and are good at networking. Identify several firms and check their history. Opt for a property management firm that’s well established and has a good property management record.