About 36% of homes in the US are occupied by renters.
Rental properties are among the best investments available. They’re great if you want to generate recurring income, and real estate often appreciates over time.
It’s important to bear in mind, however, that managing rental properties isn’t easy. There are various challenges you’ll be faced with — but you can make things much easier for yourself by hiring a property management company.
In this guide, we’ll go over some of the key signs that indicate it’s time for you to hire a property manager. Keep reading for more.
You Don’t Have Much Experience in Rental Property Management
Owning property isn’t inherently challenging, but when renting it out to other tenants, there’s a lot you need to know and do. If you haven’t managed a rental property before, there are all kinds of things you probably won’t understand, such as:
- Rental agreements
- Tenant screening
- Determining rates
- Landlord laws
This is one of the main reasons to hire a property manager. They have the skills, training, and experience to deal with all aspects of property management. This will ensure things are always done right and you don’t have any major problems.
You’re Having Trouble Finding and Keeping Tenants
One of the biggest challenges for any property owner is finding and keeping reliable tenants. When looking at different applicants, they’ll all be trying to make a good first impression. It can be difficult to know who would be a good fit.
Property managers know exactly what to look for. They have plenty of experience with tenant screening, and can therefore find applicants who are more suitable. You want people who won’t cause any problems with your property and want to stay there for a long time (so you don’t have to keep looking for new tenants).
Your property manager will also stay in communication with your tenants. If they do have any issues, your manager will be able to help them out to ensure they’re happy. This will reduce the chances of them wanting to leave and move elsewhere.
You Dont Understand the Legal Aspects
When renting out a property, there are various rules and regulations you need to stick to. The average person doesn’t know much about these, so hiring a property manager is an effective way to ensure you stay on the right side of the law.
Their job involves staying up to date with current laws, so they can understand and explain everything to you as needed. It’s worth noting that these laws can vary by state and city. As such, hiring a local property management company is best as they’ll have a good knowledge of the rules in your area.
You Live Far From Your Properties
Before investing in properties, you should look at things like demand in the area, potential ROI, etc. to ensure you can make a good income. You may find that your area isn’t the best to invest in, in which case you might buy one or more properties that are far from where you live.
While this can help with profits, it can make management more tricky. It helps if you’re nearby so you can deal with any issues in person. Having to travel far to your properties is never ideal, especially if it’s only a minor problem that you need to handle.
By hiring a local property management company, you’ll have someone who can easily deal with anything that comes up. This means that living far away won’t be an issue at all.
You’re Often Out of Town or Unavailable
Even if you do live nearby, you might find yourself out of town quite often. This can present similar issues. If you’re traveling for work, for example, and your tenants have an issue, you might not be able to deal with it.
A property management company will always be on hand to help with problems. You’ll then be free to head out of town without having to worry about what might happen while you’re gone.
You Own Multiple Properties
Owning and managing one property can be a challenge. Owning more can make things significantly more difficult. Everyone has a limit on how much work they can take on, and if you own several properties, you might quickly find yourself getting overwhelmed.
Property management companies can help with this by taking on as much responsibility as needed. You’ll have a property manager who’s dedicated to handling all aspects of your properties, so you’re free to deal with your own full-time job or anything else you have going on.
Your Properties Are Getting Old and Need More Care
Time will always take a toll on buildings. Yours might have been shiny and new when you bought them, but eventually, things will start to fail. As such, you’ll need to put more work into maintaining them.
You might not have enough time to do this properly, so hiring a property manager is an ideal solution. It’s also worth noting that property management companies tend to have good connections with builders, contractors, and other home maintenance businesses. They’ll often be able to get good deals from reliable companies to ensure your properties are always well-maintained.
The Right Property Manager for You
Whether you’re looking at buying your first rental property, or you already have several, hiring a professional property manager will make things much easier. Not only will they save you a lot of time, but they’ll also do a better job of managing your properties than you would yourself.
Reedy & Company is a leading property management company based in Memphis, TN. We have over 100 highly skilled members of staff who are more than capable of managing your properties effectively. Take a look at our property management page to see more about how we can help you.