Should I Hire a Property Manager?

| October 26, 2011 More

It’s often difficult for new landlords to decide whether or not to hire a property manager to help them fill vacancies, manage tenant relationships, and maintain their rental property. Many assume that hiring someone to manage their rental property will cost a lot of money, which is especially unattractive to those who have become landlords through circumstances such as not being able to sell their home.

In reality, though, hiring a property manager can actually not only save you time, but money as well. While they generally only charge 8-15% of your monthly rent in exchange for their services (which amounts to $96.00-180.00 on a $1200/month rental, for example), hiring a management company allows you to delegate all the work association with owning a rental.

Tasks that property management companies typically handle include:

  • Finding and screening tenants
  • Drawing up lease agreements
  • Collecting rent
  • Property maintenance, including the hiring and supervising of outside contractors as needed
  • Emergency response
  • Conducting periodic property inspections
  • Handling lease violations/evictions as needed
  • Accounting
  • Preparing annual tax statements

If all of that sounds like a lot of work, that’s because it is. If you choose to manage your own rental property, plan to set aside at least 10-12 hours a month to devote to these tasks, keeping in mind that you’ll essentially be “on call” to deal with some of these things as they arise, as opposed to being able to take care of them when it’s convenient for you.





Category: Renting My House FAQ