Managing a property without a property management company can be the worst mistake newbie investors make. Being a landlord takes a lot of work, effort and sweat more than the expectation of most first timers.
This is why property managers are in business, these are experienced real estate professionals that can take that burden off you. On the other hand, you can be able to save more money running your business by yourself, the question remains, are property managers worth their fees? We say yes, read on to find out why
#1.Time is scarcer than gold
When it comes to managing your own property, much of your time is taken with the upkeep of the property or its supervision if you will be hiring someone else to do this. The issue here is that the amount of time spent on screening tenants or collecting rent can be spent on finding new properties to invest in.
The paper work with the accompanying stress can be avoided easily by getting a property management company to do the work for you. You can save a lot of money by doing all this work but you will be losing precious time which is a valuable asset.
#2. Living the life of a medical resident
If you want to live the life of a landlord, then you should embrace the idea of not having any quality time for yourself. Tenants in general can be a handful even the good ones. When you become a landlord, it seems like your number becomes a speed dial for all the tenants. When there sinks are broken or the electricity goes bad, who is the first person you think they will call? The landlord.
When another tenant is giving them problems or the water is not running in the compound, who do they call? The landlord. If this is still not a good reason to hire a property management company to be of help, then be prepared to be always be on call be it day or night and do not expect no holiday to run off to since you will be needed around to do all the work. The fact is that to be a landlord is like a doctor on call. You don’t even get to enjoy quality sleep because can even get a call at 2am.
#3. Be the nice guy
To be able to manage your property solely on your own requires guts, strength and if possible to be able to block all emotional feelings. Most tenants want a landlord that understand this and to compromise in every situation but in this business, you can’t afford to be soft if you want to make any profit.
For example if a tenant just loses his job while owing four months of your rent and all of a sudden a family member dies, as a landlord, you will not have the heart to request for the rent. They will be expecting you to be understanding and you feel bad to ask them to leave But how do you expect to move on with your business when the rent is not coming in? this is why having a property management company is very handy in such a situation because you won’t get to be the bad guy and share sentiments with the tenants.
It’s not a bad idea per se to run your own property but this can be difficult without any expertise and experience. You have to be knowledgeable in various areas to have great success. Further more as a newbie its better to live it to the professionals to handle such things while you learn from them before deciding on doing things alone.