Is a property manager worth it?
When deciding if a property manager is worth it, you should ask yourself the following questions:
- Do I like getting phone calls in the middle of the night?
If the answer is no, hard stop- skip to the bottom!
- I like dealing with people?
If the answer is no, no more questions needed- go straight to the bottom.
- I understand Real Estate Law?
No? All good, just skip on ahead!
- Would I be willing to visit the property multiple times a week?
- Would I know who to call for maintenance repairs?
- Can I handle it if a resident stop paying rent?
- How would I feel with a resident who nonstop complains?
- Do I understand Fair Housing?
- Would I even enjoy managing my own property?
- Do I value my time?
If you answered yes to most of these questions, then you should consider managing your own property.
But I would guess most of you answer no, no way or hell no to most of these. That’s tells me, you should probably hire a property manager.
30 years ago, sure managing property was a side gig/hobby you could pay very little attention too. Just collected the rent, right? Most residents would never think to complain, they took care of the home like it was their own. Unfortunately, that is just not reality in 2022. Managing rental property is a professional, licensed, full time career. I doubt you would think anyone could do your career on the side.
You need to protect yourself. A difficult resident can be financially and mentally draining. Most property managers cost on average $150-300 a month. There are usually additional fees, but they are always related to actual work. You know what you are paying for. Leasing, Renewal, Maintenance fees are all based on actual work completed and therefore earned.
The bottom line is your rental property is an investment. Frankly one of your most important and lucrative when handled like a business. In life we hire professionals for most things. You need a doctor, an Insurance Agent, a car mechanic, a dentist.
Why would you ever think you didn’t need a professional property manager. So, is a property manager worth it? The answer emphatically is yes.