Should you hire a property manager? It’s a question many landlords wrestle with at some point. For some, managing a rental property is a hands-on passion, while others may find the demands overwhelming as time goes on. That’s where property managers step in. Before deciding if hiring one is right for you, it’s important to weigh the pros and cons and explore key considerations about what a property manager can offer.
What does a property manager do?
The pros and cons of hiring a property manager
When to consider hiring a property manager
Do-it-yourself property management
Common questions about hiring a property manager
What Does a Property Manager Do?
A property manager or property management company handles the daily operations of rental properties. From marketing and tenant screening to property tours, leasing, rent collection, and maintenance, they manage every aspect of keeping a rental property running smoothly. Ready to learn more about how they can help you? Explore this guide!
The Pros and Cons of Hiring a Property Manager
There are benefits and drawbacks of hiring an individual, or a company, to manage your rental property. Consider these pros and cons in your decision-making process.
The pros
- It saves you time and effort. Hiring a property manager means less time you have to spend managing and maintaining your rental property. You’re hiring someone to take over that job for you, saving you valuable time and effort.
- You’ll have someone with management experience to turn to. Although you know the ins and outs of the business as a landlord, it can be very helpful to have a professional property manager to turn to for advertising, leasing, or maintenance help.
- Someone else will find and manage renters and contractors. Forget the days of marketing your listing, finding and screening tenants, and maintaining vendor relationships. Your property manager will handle those tasks.
The cons
- It reduces your bottom line. Hiring a property manager isn’t free, and the expense will directly affect your return on investment. Before making the decision, review your finances to ensure it’s a viable option. Typically, property managers charge fees ranging from four to 10 percent of the property's monthly gross income.
- You’ll have less control. By hiring a property manager, you won’t be directly involved in tasks like tenant screening, handling maintenance requests, or conducting routine inspections. This means trusting the professional you’ve hired to manage and maintain your investment, which requires being comfortable with relinquishing some control.
- There’s a risk things might not work out. Trusting a property manager means relying on them to handle your investment properly and ensure it generates income. However, there’s always a chance that things may not go as planned.
When to Consider Hiring a Property Manager
There are many reasons to hire a property manager, with the most common being:
1. You’re short on time
Owning and maintaining property can feel like a full-time job, especially if you’re balancing other commitments. From screening tenants to handling maintenance requests, the workload can quickly add up. If you find yourself stretched too thin, hiring a property manager can streamline tasks and free up your schedule.
2. You live far from your rental property
Managing a property from a distance comes with unique challenges, such as coordinating maintenance, screening tenants, or showing the unit. While you can handle these tasks remotely using local contractors or virtual tools, having a property manager nearby can ease the burden, especially when emergencies arise.
3. You’re managing too many properties
If you own multiple properties, keeping up with inspections, repairs, and tenant concerns can become overwhelming. A property manager brings experience and efficiency to maintaining and managing multiple investments, giving you time to focus on other priorities.
4. You’re having trouble filling vacancies
Vacant properties don’t generate income, and prolonged vacancies can be costly. If you’re struggling to find quality tenants or aren’t sure how to market your property effectively, a property manager can help attract renters and minimize downtime.
Do-It-Yourself Property Management
If saving money and maximizing profits is your goal, you might consider managing your rental properties yourself instead of hiring a property manager. However, be ready to take on responsibilities such as:
Screening and approving applicants
Attracting renters to your property, reviewing applications, and screening tenants will all fall to you if you choose DIY property management. If your property is listed on Apartments.com, you won’t have to do everything on your own. You’ll have access to a full suite of property management tools to help you with these responsibilities.
If you choose to receive applications from renters through your listing, you will get a comprehensive look at potential tenants and be able to review and compare rental applications through your account. You will also receive easy-to-read credit reports and reliable background checks from TransUnion, making the application and screening process simple.
Collecting rent and fees
Without a property manager, you’ll have to handle collecting rent, move-in fees, monthly fees, and late fees on your own. However, with Apartments.com, you’ll be able to conveniently receive all payments securely online without the need to chase down physical checks. Collecting rent this way comes with no additional subscription costs or hidden fees for property owners, and tenants will appreciate the ease of paying rent online with their checking accounts for free.
Handling property maintenance and repairs
As a DIY property manager, you’ll be solely responsible for finding trustworthy contractors and handling maintenance issues and repairs. Apartments.com rental tools can help you manage maintenance requests. Your tenants can request repairs through their online user account, and you can easily update them about maintenance and contractor visits directly from the portal. If you have more than one unit, this tool can help you stay organized in one secure place.
Common Questions About Hiring a Property Manager
Should I hire an individual or a property management company?
Property managers can work independently or as part of a company. Regardless of their setup, you will pay a property management fee, typically ranging from four to 10 percent of your unit’s monthly rent.
It’s worth noting that some property management companies require a minimum portfolio size per owner. If you only own one property, factor this into your search for a qualified and reputable manager.
How do I find a property manager?
There are several ways to find a property manager or a company. You can start by asking friends, family, or fellow landlords if they recommend anyone. If you don’t find anyone through referrals, you can search online and read reviews or use local apartment associations to find a property manager.
What should I look for in a property manager?
This will vary by landlord and personal preference, but try to find a property manager who is skilled in:
- Communication
- Organization
- Marketing properties online
- Managing finances
- Managing contractors
- Working professionally with tenants and vendors
You will also want a property manager who has knowledge of the real estate industry, prior experience, and excellent references.
How do I vet a property manager or company?
Asking potential property managers the right questions is critical to finding the right fit for you, your tenants, and your property. Before your next interview, check out our top 20 questions to ask before hiring a property manager.
Whether you own a single property or a portfolio, finding the right property management partner is key to achieving long-term success. If you decide to choose the DIY route instead, take advantage of Apartments.com’s free property management tools and resources designed with you in mind!
Originally published by Megan Bullock on May 17, 2021
