When Hiring a Property Manager is Completely Necessary
So, you’ve purchased some property, be it a few units, a stand-alone house, or an entire apartment complex. That’s great! However, it can be tricky to manage such a responsibility all by yourself. That is when you may need to consider hiring a property manager to ensure that your rental property is properly maintained.
There are property managers for a reason.
Do you live in one state and own property in another state?
In some states, it can be lucrative to purchase income property, but if you don’t live in that state and do not wish to relocate, it may be wise to consider hiring a property manager to ensure that your property is safe and well-maintained. Additionally, living in a different state can make it difficult to ensure that your investment is a continual source of income, since finding new tenants could prove challenging if you are residing in a different state (Eberlin, 2017). It has been found that approximately half of landlords live within a reasonable distance to their property, which means that the other half lives several hundred miles away from their property (Hall, 2015). If you are unable to have someone you trust, such as a friend or family member, to drive by a few times a month, you might not know what is going on at your property.
Property Ownership vs. Property Management
Owning a property can be a good source of income, but it can also be quite a bit of a headache when dealing with tenants who are less than upstanding or if there are repairs and maintenance required. If you own one or two properties and you live near them, you may not need to hire a property management company. However, if you own multiple properties, occupied by a dozen or more tenants, it might be a good choice to go with a reputable property management company (Hall, 2017). This will also help you to ensure that you are able to be hands-off when it comes to the daily issues that may arise when handling multiple properties.
Are your properties up to housing regulation codes?
One of the areas that often gets overlooked when it comes to managing a rental property are the numerous codes that need to be met by law. While you may have lived in the property that you are wanting to rent out without issue, when it comes to the legal statutes, it can be difficult to navigate. This is where property managers can be instrumental in ensuring that the various codes and regulations are met, including the Americans with Disability Act of 1990 (ADA), which if these regulations are not met, it could potentially lead to a lawsuit (All Property Management, 2011). Some states have their own regulations and housing codes, which may be difficult to stay abreast of, as they may occasionally change. For example, in Colorado, there are some regulations that are in place that govern the rights of domestic violence victims and perpetrators (American Apartment Owners Association, n.d.). If you would rather be more hands-off in regard to how your property is managed, and don’t want the responsibility of keeping up with the changing housing codes, perhaps a property manager is exactly what you need.
Conclusion
Investment properties have experienced an incline over the last decade, but it is not without headaches and stress. One way to reduce the impact managing your property from a distance is through a property management company. When you hire a property manager, it can help to put your mind at ease, allowing another trusted person to run the day-to-day activities, such as ensuring that your property is up to code and properly maintained, while you are able to enjoy the additional income your property generates.
References
All Property Management. (2011). 10 reasons to hire a property manager. Retrieved from http://www.allpropertymanagement.com/resources/hiring-a-property-manager/10-reasons-to-hire-a-property-manager-a6.html
American Apartment Owners Association. (n.d.). Colorado landlord tenant law. Retrieved from http://www.american-apartment-owners-association.org/landlord-tenant-laws/colorado/
Eberlin, E. (2017). Do you need a property manager? Retrieved from http://www.thebalance.com/should-you-hire-a-property-manager-2124811
Hall, L. (2015). Portrait of an American landlord. Retrieved from http://www.landlordology.com/portrait-american-landlord-infographic/#infographic
Hall, L. (2017). Should I hire a personal property manager? Retrieved from http://www.landlordology.com/should-i-hire-a-property-manager/
