Real estate is one of the largest investments an individual will make during their lifetime. Owning property can potentially be very lucrative, as most real estate will appreciate in value over the course of time. Owning rental property offers an additional financial opportunity to grab hold of, should the right property present itself, which allows the investor to see an immediate return on some of that money spent. When the rent comes in, those extra dollars can go straight back into the bottom line, providing a little extra cushioning in your budget. 

Once you have decided to take a leap of faith and invest in the purchase of a rental property, the next step is to decide if you would like to have a property management company take the lead on managing it, or if you would like to fill the role of landlord yourself. Making the right decision for your unique situation is very important to the success of your return and the investment you’ve made. Here are five signs to reference, to let you know when it’s time to hire a property management company.   

The majority of property management companies are hired because the owner of that property does not have the available time to properly maintain responsibility for the unit. There are many factors to consider, when deciding if you have the available time. In order to rent out the property, you must advertise and show the property, background check the potential tenant, and write and sign a lease agreement. Once your new tenant has moved in, you will also be responsible for the maintenance and handling general questions and concerns that your renter may have. Having a property manager to complete all of these tasks would free up a lot of your time and energy. 

Sometimes an owner does not live in the same geographical location as the property they intend to rent out. Often an opportunity to purchase rental property comes up in a desirable location, or the owner did live nearby but then had to move. In situations such as these, it is often beneficial to hire a management company in order to be available to your tenant 24 hours a day. Having quick and easy access to maintain the property is a huge plus to ensure that your tenant stays happy and hopefully renews their lease when the time comes.

Although the financial return usually outweighs the negative aspects, property management can be quite stressful, especially when doing it while working another job and balancing family life. There are many issues that arise and need immediate attention, creating stress and interrupting the everyday activities that already keep you busy. Tasks such as maintenance emergencies and following up on missed rent payments can be very time consuming and create a lot of headaches. Choosing to have a property manager working on your behalf will alleviate much of that stress and leave you more time to do the things you enjoy.

A rental property with no tenants is not going to provide a good return on your investment, and this is one of the five signs to look for that will alert you that it’s time to find a property management company. A property manager knows the market trends in the local area, has a much larger pool of renters to draw from, and already has marketing in place to advertise your rental and reach a vast amount of people. A well respected company may also help draw in quality tenants who are looking to do business with a company that has a good reputation, instead of dealing with an individual owner, whom they do not really know anything about. The property management company will also have set qualifications to further ensure that you are signing a lease with a tenant that will pay rent on time and take care of the property.

Going to court to evict a tenant or being threatened by a renter who doesn’t like the rules or policies set in place, happens more often than you’d think. There is a lot to know about real estate laws, and property managers are licensed and knowledgeable on the topics that will protect your investment.

No matter which of these five signs it’s time to hire a property manager is the one that stands out the most to you personally, hiring a property management company will bring the peace of mind and support most owners enjoy.

 

If you think it might be time to hire a property management company for your investment property, contact Thousand Hills Realty at 417-337-7368 to discuss the opportunity!