Being a landlord is no easy task. While it definitely has its benefits, sometimes the negatives outweigh the positives.
Managing the day-to-day rental properties can be a demanding, time-consuming job that can take over your life. If managing your investment has started to feel like a burden, you may already be looking for a solution. Professional property managers take over many of the owner’s responsibilities, such as rent collection, tenant screening, maintenance, and more. Thus, allowing more time for owners to relax without stressing over properties or tenants. Join us below to examine different scenarios when hiring a property manager may be the best option for your rental business.
9 Telltale Signs You Need a Professional Property Manager
Many landlords looking to cut costs decide to manage their own rentals. However, they may quickly realize that managing rental property operations is an arduous task. So, whether you are new to the industry or a seasoned investor at the end of your rope – check out these nine telltale signs that you need a property manager below.
- Landlord Duties are Stressful
- Lack of Knowledge
- Your Portfolio is Growing
- Out of Town Property Owners
- Time is Running Out
- Finding Vendors is a Struggle
- You are Struggling with Existing Tenants
- Finding High-Quality Tenants is a Struggle
- A “Hands-Off” Approach Sounds Appealing
Landlord Duties are Stressful
Being a landlord is not a 9-to-5 job. In fact, owners must be available 24/7 to handle any emergency problems that may arise. In addition, landlords have many other duties that include –
- Addressing tenant complaints
- Rent collection
- Assessing late fees and sending notices
- Taxes and reporting
- Coordinating maintenance and repairs
- Compliances and legal items
- Property inspections and turnover
- Leasing and marketing vacant units
- Applicant screening
These are just a few of the daily stresses rental owners can encounter. So, if you have family or other work obligations on top of rental responsibilities, it is easy to become overwhelmed. Also, if your stress levels get out of control, it can negatively affect your business, health, and happiness. However, hiring a professional property management company means they handle the stress, so owners do not have to.
Lack of Knowledge
No matter where the rental property is located, it is subject to federal, state, and local laws. That said, this may include complying with the examples below –
- Following all Fair Housing Laws
- Inspecting the rental to obtain a rental license
- Adhering to all habitability standards and building codes
- Obtaining a Lead Certificate or adhering to other environmental guidelines
- Security deposit limits and return guidelines
Whatever the relevant laws may be, it is the owner’s responsibility to know and follow them. This can prove daunting as laws and regulations are constantly evolving. That said, a qualified property management company knows all about Maryland state laws for landlords. Therefore, hiring professionals can help ensure your business operates legally.
Your Portfolio is Growing
There’s no doubt about it – managing several rental properties at once is a full-time job. In addition, as an investor adds additional properties to their portfolio, the responsibility grows exponentially. Therefore, handling advertising, marketing, maintenance, tenant requests, and more can be hard to juggle. However, when you hire a property manager, the assigned individual handles all operations for each property. That means owners can take a more passive role and focus on growing their business.
Out of Town Property Owners
Some serious maintenance problems or late rent payments cannot be easily dealt with from far away. However, that should not limit investors from purchasing great opportunities near or far. But, when an owner’s presence is required, traveling to and from can become time-consuming and costly. Luckily, that is not an issue when working with a reputable and local property manager. In an emergency or legal matter, the management firm can act on the owner’s behalf. Thus, avoiding the hassle of an unwanted road trip.
Time is Running Out
Not everyone has the time to be a good landlord. This role requires a lot of hard work, and if owners mess up, it becomes even more of a hassle. For example, without taking the time to thoroughly screen tenants, owners could miss serious red flags and end up placing a bad tenant. Thus, opening up the possibility of dealing with late rent payments, property damage, complaints, or even eviction. So, if you find yourself rushing through landlord duties, think about the consequences. Furthermore, consider hiring a property manager to handle everything properly so you can get your free time back.
Finding Vendors is a Struggle
As a property owner, establishing relationships with local vendors is critical. Most owners turn to researching contractors online, but that does not always generate the best result. Even if you find a vendor to work with, the time needed to communicate regarding estimates, repairs, and maintenance coordination is extensive. That said, property management companies spend a great deal of time building relationships with various local vendors. This means that clients can reap the benefits of these relationships through timely maintenance and competitive fees. So, if you struggle getting making the connections you need, turn to the experts.
You are Struggling with Existing Tenants
Few things are as irritating as dealing with tenants who consistently make late rent payments. Furthermore, this is a costly situation that forces owners to take action. Following up, sending notices, and worse yet, filing for eviction if the tenant refuses to pay takes a lot of energy from landlords. Even if the issue is not payments, existing tenants can cause trouble through code violations, neighbor complaints, or illegal activity. All of this means the owner needs to step in and come to a resolution as efficiently as possible. That said, employing a property manager means they stay on top of these issues without involving the owner unless absolutely necessary. Therefore, most of the pressure is off of the owner, who now has time to focus on other things knowing their rentals are being taken care of.
Finding High-Quality Tenants is a Struggle
Too many vacancies or ineffective marketing costs money in the form of lost profits. However, that does not mean saving time; you should fill your property with just anyone. So, if your property is sitting vacant or you are unable to attract qualified tenants, it may be time for some help. Property management firms have the tools and expertise to maximize digital marketing tactics that can get listings noticed. Plus, the property manager will have experience creating attractive ads that will increase the tenant pool and draw in top-quality applicants.
A “Hands-Off” Approach Sounds Appealing
As mentioned above, working with tenants and the daily stress of a rental property is a lot to deal with. Sometimes owners have to find a property manager because they live far away from their property. Other times, a hands-off approach is more appealing. Having a professional representative means no more late-night tenant calls and, more importantly, free time to do the things you want in life.
Choosing the Best Manager for Your Portfolio
A good property manager is well worth the financial investment. Professional managers simplify an owner’s role and avoid the risk of becoming overwhelmed by unwanted responsibilities. To find the best option for your business, follow these tips –
- Ask friends and colleagues for recommendations.
- Read online company reviews.
- Thoroughly interview prospective property managers.
- Ask lots of questions.
- Carefully weigh the value of services offered against potential fees
- Read all contracts before signing
At Bay Property Management Group, we help landlords by providing rent collection services, maintenance services, eviction services, full leasing services, and so much more. Furthermore, we offer a 24/7 emergency line and a less than 1% eviction rate for tenants we place. If you are interested in hiring a local property manager or would like to learn more about what a property manager can do for you, contact our team today.