If you’re considering buying an investment property you’re also probably wondering whether or not you should be the landlord or hire a property manager. A property manager typically manages multiple properties and can help find the proper tenant, collect rents and schedule any repairs.
As a landlord, doing it yourself means screening tenants, organize showings, collect rents and manage any repairs or replacements yourself. This might be a large job but for property managers, it comes easy because this is their job. They might have the time to invest in getting the right tenant for your property, screening tenants, collecting rents, depositing it in your account and managing all repairs. Property management companies or individual property managers they deal directly with prospects and tenants saving landlords and owners time and stress over marketing the property, handling maintenance and responding to any tenant complaints. They can even pursue evictions and legal issues.
Pro Tip: “You have to run the numbers. If it makes sense to have someone else manage and handle all the stress of a rental, than go for it! Remember, that time is money and your stress level could be worth far more than a couple extra dollars in your pocket.” – Louisville Realtor Joe Hayden
There are many reasons to hire a property manager, not simply to ease the stress of dealing with the property on your own. Perhaps you have a lot of rental properties and their becoming too time-consuming. If you have at least three or four properties that you need to manage, this alone can become at least a part-time job, one in which you may not have the time or energy for. If you have a variety of rental properties, a large rental unit with multiple properties in the building or several houses, it might benefit you to move to a management company or personnel.
Another reason is if you don’t live close to the property. If you live out of state, out of the country or simply a few cities away, it can be difficult to manage properties, collect rents, handle complaints and assess any repairs or maintenance that the property might need. Having a property manager close by to deal with all of these issues is a great way to ease stress and take the burden off of the commute back and forth to and from your property.
Another reason may be that you’re simply not interested in hands-on management. Many landlords and owners love the idea of having a property that they can simply sit back and collect rents from. They can build their portfolio and focus on new rental properties rather than managing existing ones. Of course, the money has to make sense and you want to make sure that there’s more money coming in and going out each month in property management fees and repair costs.
Property managers also assess how much money the property is worth. Because property managers deal with multiple different properties, they can usually tell you what is the fair market value of rents in a particular area. You’re more likely to get a good collection of potential tenants and top dollar for your home. Property managers that have been experience can also suggest repairs, staging tips, ideas and ways to manage the property that would be beneficial to potential prospects and draw more tenants to your property.
Something that a lot of owners may not consider is the use of an affordable housing program. If lenders participate in this affordable housing program, even though it’s beneficial, it can get complicated. These programs allows the landlord to receive financial assistance which may be in the form of a grant, a low-interest loan or tax credits. This is usually in return for agreeing to rent at least part of the property to tenants earning below a certain income level. The landlord must comply with a complicated set of rules but it can be worth it for the right tenant. Because of the situation, it may be more beneficial to hire a property manager that is familiar with these legalities.
If you’re looking to invest in a great property in the Savannah Georgia area or surrounding communities and towns, contact someone that not only is a property manager but also a real estate agent. That agent can help you find the right home in the right neighborhood so that you have a decent rate of return and one that can also manage and handle your rental investments. For more details contact Helen Miltiades Today.