What starts off as, "I can do it myself" easily changes to, "I need a skilled property manager". And why you might ask? Well managing property, tenants, maintenance and contractors is hard work and time consuming and the average property owner do not have the time nor patience to handle such a job, (as they shouldn't)!
Owning real estate and managing real estate is to separate entities. Owning real estate is a commitment in order to earn a financial return. To exercise executive, administrative and supervisory direction of real estate is the definition of managing property. Bottomline you need a skilled property management firm to handle the duties of your investment portfolio and/or business.
A knowledgeable property manager can bring significant value to your investment and seasoned real estate investors are aware of this and incorporate the cost of management services when purchasing property.
What are the benefits of hiring a property manager:
- Utilizing systems to source potential tenants such as the Multiple Listing Service, which usually a real estate broker only has access to.
- Marketing and advertising your property on a daily basis.
- Offering credit and background screening services through software.
- Ensuring rent is paid on-time.
- Handling property inspections.
- Utilizing property management software systems.
- Offering tenant reporting.
- Budgeting and record keeping.
- Maximizing your profits.
- Handling all maintenance and repair requests.
- Assisting with legal representation such as eviction services.
And the list goes on!
The only job a real estate investor should have is asset management; focusing on the growth of the business not micromanaging the properties. So, the next time you want to shout "I can do it myself" consider the advantages of spending the average of 10% to gain 100% more freedom and less stress.