If you are fortunate enough to own an investment property, it may occur to you at some stage to become a landlord and rent it out to someone who needs a home. Everyone wants to save cash when it comes to their rental, but as a landlord can you really afford not to have your property managed effectively?
You can manage as a landlord and learn how to manage your cash and your income as part of your investment, but if you don’t use a high quality property management company, you might find yourself tied up in knots trying to do everything. Thetis is never going to be good for anyone and managing your property yourself can also be pretty costly. You might need the help of an expert in property management when you become a landlord and here are some of the top reasons why:
- Property managers know how to navigate the issues that count. Do you really want to deal with repairs? Do you know how to deal with the hundreds of applicants you might get to the property? How about performing a background check? All of these things are important to know if you’re going to be managing your own property and a good property manager can usually spot the issues before they really get bad!
- You might have to deal with bad tenants. You might not have the ability to access checks and ID requirements in the same way a property manager would. There is also a chance that bad tenants can spot this and will use this as a way to manipulate you and not pay your rent to you when they’re supposed to. Most of the time, poor tenants will avoid an agency and choose to target direct landlords to avoid those background checks.
- You might not have access to landlord protection insurance. Property managers work to protect landlords and quality agents will always have access to cover that’s unavailable to a property owner directly. Inferior cover could be a huge issue if you end up with a tenant who ruins your property.
- You might not get the best tenants in such an efficient way. You want to get your property rented with high quality tenants who are working and able to keep up with the rent. In return, you perform maintenance on time every time! You need to get your property on the market and if you go with a property manager, you’re going to have access to a range of available tenants and get your home let out very quickly.
- You might get your heart strings pulled. An investment property is a business, and while you can let your property to a friend, it’s not always a good idea to mix business with your personal life. You should consider that a property manager becomes a barrier between you and getting too emotionally involved in someone else’s story. Using their help will make a difference in how you manage your investment.