According to Brian Setencich investing in real estate is a risky but lucrative business. However, it also comes with some challenges. Since real estate is an illiquid asset, it is difficult as well as time-consuming to get customers. Another problem is lack of experience in managing properties. For this and many more reasons, it will be worthwhile for you to consider hiring a property manager.
There are numerous property management companies. Some manage residential properties while others like First Service Residential in San Francisco manages both residential and commercial properties. According to First Service Residential General manager Brian Setencich, Property management companies make money when they have a wide range of customers. You need to work with a property management company with a sound reputation.
Time Consuming
The idea of becoming a landlord may seem appealing, but the role comes with its challenges. One of them is time. As a landlord, you will need to dedicate much of your time to attend to the needs of your tenants. This may not leave you with enough time to relax and attend to your family or personal issues. Hiring a property manager will ease this burden.
Legal matters
Sometimes you may get into a legal tussle with a tenant. Rentec direct suggests that by hiring a property manager you benefit from a wealth of legal experience which will be a great advantage when facing such legal issues. This will save you a lot of time and stress of appearing before a court of law.
Right customers
Because you will not have enough time to do a thorough inspection of tenants, you might end up with unruly tenants. A property manager has all the time to conduct a rigorous tenant screening process.
Law abiding landlord
Another reason why you need a property manager is that you might not be familiar with property laws. A property manager will help you in making sure your property complies with the existing property laws.
Part of homeowners associations
It is always good to join an association. It gives one a higher bargaining power. Associations can even influence legislation. As a member of the homeowners association, you will need to attend various meetings. You might not have time for attending every homeowner’s association meetings. This is where a property manager comes in handy. He or she will represent you in homeowners’ association activities and meetings.
Market research
As an investor, you need to keep track of the changing property markets. All property management argues that by having a property manager, you will benefit with an extra pair of hands that will help you establish the current trends and prices.
Business advice
The truth is that you cannot be a jack of all trades. There are certain decisions that you need to seek advice before you make. Such trivial things like increasing prices or changing from renting to selling may require an expert’s advice. A property manager will advise you accordingly when you will need to make a few business decisions.
Safe distance
You need to keep a professional distance when dealing with your tenants. A property manager will act as this barrier that keeps you away from interacting intimately with your tenant. According to Home Basics, keeping a safe distance ensures you make a sound business decision that is devoid of emotions.
Regular Maintenance
A landlord’s work is not just collecting rent every month. It also involves other strenuous activities like doing repairs and regular maintenance. Also, responding promptly to tenants’ problems. All these activities will break your back.
Advertising your property
Another reason to hire a property manager is that he or she will go a long way to offering extra services. He will market your property on your behalf. He will also help in the moving-in and moving-out procedures.
Why do you need a property manager? Well, property managers give you a host of advantages as mentioned above. Hiring a property manager might cost you some extra cash, but it is worth it. The adage sums it up, Use money to get more money.