Breaking Property Management Myths
Renters Warehouse Blog
Breaking Property Management Myths
When it comes to managing rental property, it's easy to assume that this is one responsibility you'll want to shoulder alone.
After all, managing a rental can't be too difficult, can it? And besides, aren't property managers expensive?
When it comes to property management, though, the truth is that myths abound. From the widespread belief that property managers are costly, to the fear that no one can look after your property as well as you, there are plenty of reasons to assume that managing your own properties, is vastly preferable to outsourcing the job. But once you dig down past the surface, you'll find that most of these opinions are based on rumors, a lack of awareness -or even pure assumptions.
Ask anyone who has had first-hand experience with an excellent property management company, and you'll find that they're more than willing to set the record straight.
"If I didn't have access to a good, competent property management company, I wouldn't have even considered buying rental properties in the first place," says Seth Williams, Founder of REtipster.com. "That's the honest truth."
If you own a rental property -or are considering investing in one, don't get hung up on the common myths surrounding property management. From handling the day-to-day headaches and issues that arise with rental property, to tenant sourcing and screening, the fact is that a good property manager, for many busy landlords, is a lifesaver.
With this in mind, let's take a look at some of the most common misconceptions surrounding property management companies, and separate fact from fiction now.
Property Management Myth #1: Property Management Fees Add Up Quickly
While some landlords have concerns about property management fees quickly adding up, it's important to note that a reputable property manager will only charge fees when the rental is occupied. This means that if your rental sits empty, you won't have to pay out anything.
In fact, far from being costly, a good property manager may even be able to help you increase your net income -thanks to the fact that they are usually extremely familiar with the local rental market, and will have a good idea about the maximum competitive rate that it will rent it out for -which may be more than what you were charging yourself. Additionally, since most property managers have an extensive network that they can advertise vacancies to, they will often be able to help close the gap in between tenants more quickly as well.
Property Management Myth #2: A Property Manager Won't Look Out for My Home Like I Would
"They won't look out for my property like I would," is another common myth. But the fact is that a reputable property management company will, in fact, have a vested interest in your rental property's success. Think about it. If you weren't happy with the services provided, they would lose you as a client. No company wants that to happen. Naturally, they'll look after your house in a way that's satisfactory.
"Your property manager has a vested interest in you doing well," explains Williams in his article, Why Hire A Property Management Company? . "They're in your corner because if you do well, THEY do well."
Property Management Myth #3: They Won't Screen Tenants as Thoroughly as I Do
While rumor has it that property managers will allow just anyone into your rental, this isn't the case. A professional property manager will never go by gut feelings alone; instead, they will have strict screening criteria that they use to ensure that tenants are properly and consistently vetted -before they hand over the keys.
Property Management Myth #4: I Don't Need a Property Manager -I Can Easily Do It Myself
"Wait a second -why would I hire someone to manage my property?" You might be thinking. "I can easily do it myself."
While it's true that you certainly can oversee your own rental, the fact is that the hours spent managing your property, will slowly but surely start to add up. This is especially the case if you already have another full-time job, or live a considerable distance from your property. While many landlords don't mind spending time on their rentals in the beginning, before long, devoting weekends to lawn care and maintenance starts to become a real chore. If you find yourself feeling frustrated that this passive income is quickly turning into another job, consider turning this venture over to a professional property management company.
Property Management Myth #5: Involving a Property Manager Will Complicate Things
Enlisting the services of a property manager won't complicate things -in fact, they will simplify your life tremendously.
"On average, I spend about 2 minutes per month thinking about my rental properties while the money builds up in my bank account over time," Williams says. "Showings, screenings, house visits and evictions are all handled by my property manager while I'm comfortably living my life."
Another area where a property manager can help to simplify your life is when it comes to landlord-tenant law. There is an extensive amount of legislation -both federal and state that you must comply with as a landlord. If you don't have a working knowledge of your responsibilities and obligations as a landlord, you could quickly find yourself in trouble. A professional property manager, though, will be well versed in landlord-tenant law -and able to operate on your behalf to help keep you in the clear legally.
Property Management Myth #6: I Will Lose Control Over My Rental
Absolutely not! Hiring a property management company doesn't mean you are signing away your rights as a property owner; simply that you're outsourcing some of the work to someone else. In fact, at the end of the day, it's something that can give you even more control over your rental.
Experienced property management companies can often spot potential concerns before they turn into major issues -and know how to take action to mitigate those problems, preventing them from becoming worse. They can keep you informed of important developments with your property, involving you in the decision-making process. You'll always have the final say. When it comes to control, you'll be in the driver's seat the entire time.
While being a landlord may seem straightforward, the fact is that when you're first starting out -or if you live out of town or have another full-time job, having a good rental property management company on your side can mean the difference between success -and a failed venture. And if you're looking to create passive streams of income to grow your wealth, then hiring a property manager is certainly the best way to go.
Don't make the mistake of feeling that you have to go it alone, locating a professional residential property management company will simplify your life, keep the rental occupied with professionally-vetted tenants, allow you to outsource maintenance and other time-consuming tasks -and help to free up your time.
Experience the freedom that a professional property manager brings -and reclaim your weekends once again.
How about you? What property management myths have you heard?