Purchasing an investment property can be an exciting endeavour. If your apartment building is in an excellent location, in good shape and has the right tenants, you can earn a lot of money from your rental units.
However, the decision to manage your investment property or hire a professional management company should not be taken lightly.
Managing your unit might seem like a good idea when you first start out. This is because you retain full control over costs, tenants, maintenance, and revenue. However, dealing with these issues can get tiring quickly. Do you continuously want to track down tenants to collect rent, or deal with middle of the night phone calls when a pipe bursts?
Hiring professional property management can be worth every penny. Not only will they deal with all of the tedious issues for you, but they bring a portfolio of experience with them.
If you are still unsure if hiring a property management company is the right decision for you, here are four scenarios when you shouldn’t manage your property.
If Real Estate Investing is Not Your Main Job
If you are an investor that has a full-time job and wants to manage their investment property on the side, then you should consider hiring a property management company.
Managing a rental property is like a full-time job, especially if you have more than one unit. You need to be available at all hours of the day to deal with emergency tenant issues. You are also the sole person responsible for dealing with repairs, maintenance, and routine upkeep.
You should also consider hiring a property management company if you are new to being a landlord.
If You Want to Be a Passive Investor
Do you want to reap the benefits of having an investment property without dealing will all of the hassle? If you answered yes, then you should consider hiring a property management company. Your time is valuable, and property managers know this. When you work with one, they will deal with all of the tenant, and maintenance issues for you, leaving you to have time to relax and spend your time elsewhere.
If You Do Not Have the Time to Learn the Rules and Regulations
Many rules and regulations need to be followed when renting out an investment property. These laws can sometimes be hard to understand and vary from market to market. If you do not have the time to dedicate to learning all of the laws and regulations that you could be opening yourself up to potential lawsuits. Property managers will not only have the expertise of the rules, but they will also have access to resources that will explain all of the regulations that need to be followed.
If You Do Not Live in the Same City as Your Investment Property
One scenario where you should hire a property management company is if you do not live in the same city as your investment property. Having a property manager who lives within a reasonable distance from your property will be very beneficial. They will deal with all of the tenant issues and upkeep that you are not able to do since you are not in that city.
It is also advised to hire a property management company if you want to expand your portfolio to contain many different units. A property management company will bring expertise, professionalism, and industry connections to your investment property.