Building a real estate portfolio can have an amazing upside to help you achieve financial independence. However, it will require some kind of time commitment.
If you don’t have the time in your life to devote to managing your real estate properties or would prefer to avoid the day to day tasks, you don’t have to rule out real estate. Instead, you could consider hiring a property manager. With a property manager, you’ll be able to enjoy the benefits of real estate without making a large time commitment.
What is a property manager?
A property manager can be an individual or company that you hire to oversee the operation of your property. In most cases, the property manager takes the vast majority of the rental property off your hands.
What does a property manager do for you?
Let’s take a closer look at what a property manager can take care of for you.
One of the most basic responsibilities of a property manager is collecting rent from the tenants. Not only does the property often set the rent prices to an appropriate level, but also sets up the system for collecting rent. Generally, this involved setting a due date for monthly rent and enforcing the deadline with late fees.
Property managers can find tenants to fill your rental units. When vacancies pop up, it will no longer be your responsibility to advertise the listing and show the unit.
Additionally, the property manager can vet potential renters. This might include running a background check or credit check to find an attractive tenant. It is a good idea to get on the same page about this part of the process. These tenants will be living on your property, so you likely want quality candidates.
Finally, they will handle the move out process and deal with evictions when necessary.
Throughout the course of owning a rental property, you’ll find that repairs pop up on a regular basis. The property manager will be responsible for keeping the property functional and safe. So, if there is a broken hinge in the unit, the property manager will find the repairman and have the repairs completed. You will not need to schedule multiple repairmen to keep your property up and running.
Of course, not all property managers do all of these things. Make sure to ask potential candidates specific questions to determine exactly what services they can offer you.
Pros of hiring a property manager
A property manager can take over the details of running a smooth rental. You will no longer be dealing directly with the tenants in your unit. Instead, the property manager will report any necessary updates to you. The rental income from the property will still come in on a regular basis with much less work on your part.
Since you will free up more of your time, you can focus on the bigger picture and continue to build your real estate portfolio.
Cons of hiring a property manager
Although a good property manager can make your life infinitely easier, a bad property manager can create more problems. If they are not great at their job, then you’ll be stuck trying to pick up the pieces. You are the one that cares most about the condition of your rental property. A bad property manager may not take the best care of your investment.
With that in mind, it is important to do your research upfront on the property manager that you choose to work with. In addition to reviews, make sure to ask specific questions to ensure that you are getting exactly what you want out of the agreement.
Should you consider hiring a property manager?
If you are overwhelmed with the details of managing your property or would simply prefer to spend your time doing something else, then hiring a property manager can be a good option. Take a look at the responsibilities that you could outsource to a property manager and consider the value of that time saved. Weigh that value against the cost of hiring a property manager. Depending on your personal situation, hiring a property manager could be a great option!