Should you manage your own rental properties, or hand off the task to a property manager? This question is something many landlords ask themselves. On one hand, taking care of your own rental properties saves money, but it costs time, effort, and often results in stress. It’s a lot of work taking care of a physical property and tenants. Still, 77% of smaller properties are self-managed.
Although the overwhelming majority of property investors choose to manage their own properties, there are several indications that it’s time to hire a professional.
Here is a breakdown of the top five reasons it’s time to hire a pro to help manage your rental units.
Your time is valuable. There are only twenty-four hours in each day and once that’s gone, you’ll never get it back. If you are spending too much time on your properties and not enough time pursuing your hobbies or being with friends and family, it’s time to hire a property manager.
Property management duties are endless. There will always be vacancies to market and show, rent to collect, tenants to call about this or that, notices to serve, and contractors to call for repairs and maintenance.
You probably remember what it was like before you became a landlord – you had time to go to the movies, relax, and go on trips with your family. Maybe you want to go to your child’s soccer games or dance recitals, or take your spouse out for an anniversary dinner. When you hire a professional property management company, you will get that precious time to yourself once again.
Have you been struggling to acquire additional investment properties because you don’t have the time? If you’re too busy to expand your portfolio, you won’t grow your wealth. You need more time.
In addition to giving you more personal free time, hiring a property manager will also free you up to pursue additional investment properties. When you’re not tied to your tenants and property’s physical needs, you’ll have the freedom to look at potential houses and work on closing some sweet deals.
There’s no denying the frustrations of being a landlord. Most people who become accidental landlords have no idea what they’re getting into when they take on their first tenant until something goes wrong. For instance, it’s a rude wake-up call when you have your first encounter with a demanding tenant who doesn’t want to follow the rules. The first time a tenant causes serious damage can be equally shocking.
It’s hard to watch your properties deteriorate in the hands of tenants who don’t take care of the property. Sure, you can evict bad tenants, but it costs time and money. Either way, you lose.
A property manager will work directly with your tenants from day one so you never have to put yourself in a frustrating position. They’ll screen your applicants to strict standards to make sure they only accept high-quality tenants, and they’ll serve all notices and evictions properly on your behalf. Every repair and maintenance request will be handled promptly and professionally, and all federal, state, and local landlord-tenant laws will be followed to the letter.
Are you ready to retire? What does retirement look like for you? Total relaxation, no work, all play? Some property investors still manage their rentals when they retire, but that doesn’t mean you have to follow suit.
Investment properties require continuous work, but you don’t need to sell them when you retire – that would defeat the purpose of funding your retirement with rental properties.
If you’re ready to retire and you truly do not want to work anymore, hiring a property management company is the easiest way to hand off all of your rental-related responsibilities. You’ll still get income from your tenants, but you won’t be doing the work.
Maybe you have plans to travel when you retire, or you want to move to another location like a beach town or an artistic community. If you move far away from your properties, you won’t be able to manage them anymore. A property manager is the solution.
A crucial part of being a landlord is always aligning your actions with landlord-tenant laws. That’s hard when you don’t know the laws, or when it’s too confusing to remember each time you need to perform a task. For instance, you’ll need to comply with the following:
That’s a lot of information to remember. Unfortunately, if you make a mistake, it can cost you plenty. For example, if you deny a tenant’s request for a reasonable accommodation, they might sue you. If you attempt to evict a tenant, but don’t follow proper procedure, your case either won’t be heard or the judge will side with your tenant.
There’s much at stake for landlords who aren’t absolutely knowledgeable about the law. While you can’t avoid every lawsuit, having a property manager will reduce the potential. The pros are used to doing everything by the book.
Whether you’re overwhelmed, ready to retire, or you want more free time, we can help. At Green Residential, we manage properties for Houston investors who want to provide the best experience for their tenants without doing any of the work. Life will be easier and less stressful when we manage your properties.
Get in touch with us and tell us about your situation. We’ll provide you with a free property analysis to identify what services will be most beneficial to you. It’s time to take back your time and freedom and turn your properties into a truly effortless source of income.
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