Using a property management company for small rental properties may not be cost-effective. It is advised that if you have the time and you live close to the property you should try and manage it yourself. Hiring professionals for small jobs can hurt your monthly cash flow. Doing your own maintenance and yard work is always a good idea when you are just starting out.
As you begin to purchase more investment properties there may be a need to hire a property manager. Most buildings, even small ones(two to four units), can use a resident manager. A reisdent manager can be your contact person at your investment property. He or she will advise you of all problems and can show the apartment to potential new tenants when there is a vacancy. When you graduate to larger buildings you may need to hire a property manager.
Why Hire a Property Manager for Multiple Residential Investments?
- They take care of the preparing, advertising and showing of the rental property.
- They thoroughly qualify tenants by running credit checks, employment verifications and previous housing references.
- They collect rents and deposits from tenants and provide monthly cash flow statements of your property
- They handle property maintenance issues during the day and provide staffing for after hours emergencies.
- They have experience and expertise in managing rental properties and are up-to-date on the current laws affecting rental housing.
Keep in mind that more limited management services are available. Perhaps you just need a property manager that charges a small fee to cover the basic services such as: picking up the monthly rent checks and providing regular accounting reports.
There are also companies that specialize in finding tenants. If you think about it- what you want from a property manager is as little vacancy as possible, expenses controlled and units rented out at or above market rates.
Need Help Finding a Good Property Manager?
Your real estate agent should be able to make some good suggestions. Take a drive around the area and look for signs. Property management companies usually put a sign outside the properties that they manage. Talk to tenants and the owners: are they happy with the level of service that company provides? If you get some good feed back, call the company and spend some time interviewing the specific property manger that will be over seeing your property.
As a rental property owner, you may routinely have to hire workers such as painters, cleaners and plumbers. Having a trusted “handyman” on call will save you a bundle in the long run. By doing your homework properly the first time around, you will be able to save money and eliminate stress. Develop a list of reliable fix-it and contractor personnel who do a good job for a fair price. When you are looking around for a qualified professional you should be looking for three important things: good work, competitive pricing and a dependable response. Establishing a trustworthy and competent relationship will be beneficial to any investment now and in the future.