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Many real estate investors start by managing their properties themselves. Some, want to keep tabs on their investment by being hands-on with every detail. Others take a DIY approach because they hope to save some money. Regardless of the reason, many investors reach a point when they can no longer self-manage. With that in mind, here are five signs it might be time for you to hire a property manager.
1. You Own Out-of-State Investment Property
Owning a nearby investment property comes with many responsibilities. Between maintenance, repair, tenant screenings, and turnover, it seems like there’s always something to do. However, when your investment property is located in another state, managing your property becomes even more challenging. Not only must you handle repair and maintenance requests over the phone, but you’ll also somehow need to arrange viewings, lease signings, and all the other critical face-to-face tasks remotely. You’ll also need to arrange special trips to visit your investment property, so you can make sure it stays in good repair.
Hiring a property manager will help. Not only will they handle the routine, in-person tasks that come with owning a rental, they’ll also act as your eyes and ears on the ground. They’ll monitor your property’s condition, inform you of needed maintenance, and handle emergencies when they arise.
2. You Own More Investment Properties than You Can Manage Yourself
Those endless tasks that come with owning an investment property multiply when you own more than one investment property. There will be more repair requests, more emergencies, more advertising, more tenant screenings, more of everything. The demands of owning multiple properties can quickly become a full-time job. If you don’t want to become a full-time property manager, you’ll need to hire someone to do the work for you.
3. The Administrative Tasks are Too Much
Good property managers are detail-oriented. They keep meticulous records, document every tenant interaction, and have all the necessary information at their fingertips. This attention-to-detail is crucial in cities — like Portland — with strong tenant protection laws. These administrative tasks are not for everyone, however. But if you don’t have good organization, record-keeping, and documentation habits that come with owning a rental property, you could be placing yourself at risk for a lawsuit or government fines.
4. You Don’t Want to Hire Employees or Be a Manager
When the management and administrative tasks become too burdensome, some real estate investors hire employees to help out. This decision comes with an entirely new set of challenges, however. You’ll need to set up a payroll system that distributes employee pay while withholding proper payroll taxes. On top of the additional administrative expense, you’ll need to pay your share of their payroll taxes, as well. That’s not to mention all the other responsibilities that come as an employer, like benefits, paid time off, and hiring and firing practices. In reality, you’re only replacing one administrative headache for another. Property management companies, on the other hand, will be independent contractors. You’re solely responsible for paying the monthly management fees.
5. You Aren’t Providing Great Service for Your Tenants
In many ways, your tenants are your customers. They’re spending hard-earned money to live in a home that meets their needs and, in turn, they expect a certain level of service. Property owners rely on their tenants to provide a steady stream of cash as a return on their investment dollars. After all, an empty house provides no return at all. If you’re struggling to provide excellent service to your clients by being responsive to questions, requests, and concerns, they will soon go somewhere else. Nothing drives a great tenant away faster than feeling like their needs are being ignored.
Good property management companies dedicate themselves to providing exceptional service for tenants. Not only does this keep tenants satisfied, but it also protects property owners by keeping their homes occupied. It’s a win-win arrangement for everyone involved.
Property Management in Portland Oregon
If you own an investment property in Portland, Oregon, and think it’s time to hire a property management company, we can help. Rent Portland Homes by Darla Andrew has the experienced team you need to handle everything that comes with renting your home. From advertising to tenant screening, to maintenance and repair, we take care of it all. Over the years, we’ve turned hundreds of property owners into successful and satisfied real estate investors. If you’d like to learn how we can do the same for you, call or text Darla at (503) 515-3170 or send an email.