In part one of this two-part blog series, we went over some of the variables involved in deciding whether to hire a property manager for your rental property. There are both benefits and potential drawbacks to doing so for those who own such properties, and your choice will likely come down to how these variables play into your own needs and desires.
At Fox Financial, we’re proud to offer numerous services within the real estate investment world, including rental property investment and everything that comes with it. Today’s part two will continue our series – what are some of the potential downsides of hiring a property manager that you should keep in mind? If you do decide to hire one, what should be the qualities you look for? We’ll cover these areas and more.
Potential Downsides of Hiring a Property Manager
While there are many potential positives involved with property managers, which we went over in part one, there may also be some downsides for certain property owners. Some of these may include:
- Cost: This is the primary potential negative for those who are waffling on this decision, and it’s understandable in many situations. The cost of property management will vary between companies and areas, usually ranging from 4% all the way up to 12% of the gross property income (rent). There will also often be leasing up costs and other fees in some cases. For those who believe they have the time and know-how to handle several of these areas themselves, it’s worth considering whether this will be worth it.
- Quality of oversight: While reputable property managers will be dedicated and do a great job – and we’ll only recommend such individuals or companies – there are those who believe no one could ever care for their property quite the way they do. When you actually own the property, some believe, you can put in a greater effort maintaining it.
Property Manager Qualities to Prioritize
If you determine that hiring a property manager is the right choice for your rental property, here are some of the qualities we recommend you look for while hiring one:
- Honesty and reputation: When trusting your property’s management to another person or entity, you need to know they can be trusted. Multiple candidates should be considered, and only from companies that can show a history of strong service and good reviews.
- Flexibility: While a property manager has to handle certain things their way, they also need to be able to conform to your needs. Those who are too rigid or unwilling to compromise may create headaches down the line, whether it’s in financial areas, tenant identification or others.
- Property familiarity: Finally, you should be looking for a property manager with experience and familiarity with your property type and area. Not all rentals are the same, and you need to know you’re supported by someone with knowledge on your specific type.
For more on whether or not to hire a property manager for your rental property, or to learn about any of our real estate investment services, speak to the staff at Fox Financial today.