Property owners have the choice to run the day-to-day management tasks by themselves or bring in professionals. If you consider hiring a rental manager like myHomeSpot.com, it is advisable to carefully weigh all the pros and cons of this significant decision. Hiring a rental manager will considerably affect all aspects of your property, such as if rent is collected on time, how quick vacant units are filled and how maintenance issues/disputes are resolved. This article will list several advantages and disadvantages of bringing in a rental manager to take over the running of your property.
Pros Of Hiring A Property Manager
- Experience in the industry
Rental managers usually have a lot of experience in managing property. If you have properties in different locations, you will need to educate yourself on the many, and often differing local regulations and laws before effectively operating as the manager of your own properties. Rental managers usually have an intimate knowledge of zoning regulations, property tax obligations, and how fair housing laws affect landlords and tenants.
Management and maintenance issues will be a large part of your rental manager’s obligations. Years of experience have taught rental managers the most effective ways to deal with a wide range of issues like breach of the lease agreement, roommate disputes, tenant eviction, renting out vacant units, and maintaining the property in peak condition.
Usually, an experienced rental manager will walk you through the process in which you would hand over the property and notify your tenants of the management changes. A diligent rental manager will also detail your working relationship, communication channels, performance evaluation and projected earnings.
- Rental managers ensure a timely response to maintenance issues
It can be very inconvenient to receive phone calls from disgruntled tenants at all hours as a property owner. Rental managers act as a go-between you and your tenants; experienced managers will never bother you with petty concerns because they can handle these themselves.
It can be quite challenging for you to respond to every complaint on time and assess the situation before hiring a professional to rectify it unless you live on the property. A timely response to maintenance complaints is critical because it helps prevent further property damage that would be caused if problems went ignored. A rental manager will increase your tenant retention rates by being available to tenants at all times and, therefore, able to offer a timely and satisfactory solution.
- Rental managers increase tenant retention and decrease vacancy periods
One of the best ways to increase and maintain profits from your property is by increasing your tenant retention rates and decreasing the periods when vacant units remain unoccupied. A rental manager will quickly get an unoccupied rental unit back in shape when the previous tenant vacates. Marketing and finding a suitable tenant within a reasonable time also falls within the rental manager’s job description.
Rental managers are exceptionally proficient at decreasing vacancy periods and increasing tenant retention rates because it often affects how much money you pay them. It is advisable to rely on rental managers for these tasks because they have unique skills that make them very efficient at managing these aspects of your business.
Cons of Hiring a Property Manager
- Rental managers are an extra business expense
Many property owners pause at the thought of hiring rental managers because of the extra expense it will add to the cost of running the property. Rental managers offer a paid service that will provide you with many benefits that outweigh the initial payment. Most rental managers charge a monthly fee that is usually a percentage of the total rental income.
Some rental managers also charge a leasing fee that offsets their cost when marketing and screening tenants for vacant units. A few rental managers also have other periodic fees like renewal, cancellation, and extra maintenance fees. It is advisable to read any contract with a rental manager carefully before signing so that you fully understand the obligations of all the parties involved.
- Decrease your involvement with your property and renters.
If you are one of those property owners that enjoys being involved in all facets of management, then a rental manager will certainly keep reducing your direct participation. Rental managers pride themselves on freeing up your time while running your property in a manner that you approve of.
Experienced rental managers may write down minor occurrences in the daily reports but will hesitate to bother you personally. If you want a hands-on approach, you will need to notify your rental manager that you wish to be briefed on all the happenings in your property.