5 Signs You Need Professional Help with Property Management
Effective property management can be challenging for the self-directed investor and the first-time landlord. While most landlords enjoy the benefits of property ownership, few are cut out to be their own property managers. To succeed as a landlord, you need time, financial resources, and knowledge that only accumulated experience can provide. If you're a new or prospective landlord looking for an easy way to identify if you need professional help with property management, read on to discover five red flags that suggest you consider hiring a pro.
You Don't Have Enough Time
Suppose you're a single parent, a busy executive, or someone who is too busy to manage a property properly. You should think about hiring a property management company, especially if you have several properties. Managing rental properties is not a part-time job; it's a full-time job. You must be able to dedicate sufficient time to the property management of every property. You should also carefully consider the impact that a new tenant will have on your time and life. If the property is in a desirable neighborhood, you'll likely have a long list of prospective tenants who want to rent the property. This influx of people into your life can be overwhelming. You must effectively screen prospective tenants, conduct background checks, negotiate leases and resolve tenant issues.
You Are Struggling to Find Decent Tenants
Landlords constantly evaluate tenants to determine whether they are good or bad tenants. Unfortunately, if you're assessing your tenants yourself, you're likely missing critical red flags that would otherwise automatically disqualify them as tenants. Working with a professional rental management company can quickly help you find the right tenants for your property. From screening out requirements, chasing up references and running credit checks, there is a lot involved in finding the right tenants and many things inexperienced landlords can overlook, potentially opening them up to massive issues in the future.
You Are Falling Behind With Collecting Rental Payments
As a landlord, you will eventually learn that collecting rent is never easy. Some tenants pay on time, while others pay late, don't pay, or go into default. The effective landlord will keep track of late payments and late tenants. Some landlords are more lenient than others when it comes to collecting rent. Generally, the more tolerant you are with tenants and their payments, the more problems you will have in the long run. If you are falling behind collecting rent, it may signify that you are being too lenient with your tenants. If this sounds familiar, you should consider working with a management company to keep on top of rental payments and chase overdue rent.
Your Property is Problematic
All rental properties have the scope to become problematic at one point or another for various reasons. It doesn't mean you are a bad landlord when problems arise, but it could indicate you need expert help.
When it comes to repairs or even pest invasions, tackling the issue yourself can seem like the best way to keep costs down; however, this opens the door for poor repair jobs and lower standards, not to mention the risk of the issue becoming worse over time.
Working with experienced contractors to carry out your repairs can take a weight off your mind and ensure your investment is in the best condition possible, be it working with general contractors, property management pest control or experienced electricians.
You Live Outside of Easy Commuting Distance
If you live far away from your rental property, you're setting yourself up for failure. Whether it's an annual checkup, an unexpected repair or a tenant dispute, a long-distance between you and your rental property is an obstacle you can't overcome. If you live far away from your property, you're likely to have a hard time effectively managing it on your own. Problems will arise that require you to take action, and if you're living far away, you're not going to be able to address those issues as quickly as you should. If your rental property is relatively close to your home, you're better positioned to manage it effectively.
The best way to ensure that you don't become overwhelmed by the responsibility of managing your rental property is to hire a professional property manager. Doing so will allow you to enjoy the benefits of being a landlord while keeping you grounded with a realistic level of responsibility. While most landlords enjoy the benefits of property ownership, few are cut out to be their own property managers.