Should You Hire a Property Manager?
Building a rental property portfolio requires a lot of time and dedication. It also takes a lot of hard work for real estate investors to manage their properties on their own and keep them in the best possible condition for their tenants. At some point an investor’s portfolio will become too large or span across too many locations for them to continue to manage them themselves and they will need to begin to explore outside options to help them keep their properties in the best possible shape.
According to an article from BiggerPockets.com, one of the best ways to pass off managing a growing rental property portfolio is to hire a property manager. Hiring a property manager allows real estate investors to take a step back from managing the properties and instead allows them to focus on growing their business and acquiring more properties to add to their portfolio. Property managers offer many services including maintenance, tenant-screening, and rent collection, just to name a few. They are also up to date on tenant-landlord laws, licensing requirements, and any local ordinances that may change or be updated that would have an effect on the property.
Providing these services does have a cost and investors could pay anywhere between 4-12% of the monthly income from a rental property to their property manager. While it may seem like a high price to pay someone to manage their properties, the ability to have someone take care of the day-to-day tasks frees the investor to focus on the big picture of growing their business and buying more rentals.
There are many advantages to employing a property manager but not every investor may feel the need to hire one. Some investors may prefer to be as hands on as possible with every property they own and would like to solve any of the issues that may arise themselves. If that sounds like you then it may be in your best interest to not hire a property manager. However if you prefer to focus on finding and acquiring more properties and spending less time on day-to-day issues, then the services that a property manager provides may be a perfect fit for your business needs.
At Lima One Capital we make it easy to finance all of your fix-and-flip, rental property, and multifamily investments. We are a national lender, lending in 46 states as well as Washington, D.C. Since our founding in 2010 we have sought to provide revolutionary financing options to real estate investors and we have a passion for seeing our investors succeed!