Being a landlord is one of the toughest occupations in the world. Renting can be the biggest hassle of your life. Many owners of rental properties think they want to handle the job of landlord. It is much cheaper in terms of dollars of expense. Soon a property manager is suggested to the hassled real estate owner. What are the 5 reasons to consider a property manager?
A landlord can spend 40 hours a week running all over the city handling blocked toilets, fixing A/Cs, and solving maintenance problems. Then you get to find tenants, vet them, and kick out tenants who don’t pay. Once in a blue moon, you might get a vacation.
5 Reasons to Consider a Property Manager
- A property manager finds the right tenant. The cost of choosing the wrong tenant is steep — in terms of time, money and, in some cases, legal difficulties. Finding and placing a qualified tenant demands both diligence and knowledge. A qualified tenant is a tenant who passes a background and credit verification check as well as receiving a good reference from current and past landlords and employers. Finding a qualified tenant also involves setting a rental price, and advertising.
- A property manager creates a good lease. After successfully qualifying the tenant’s application, it’ll be the property manager’s responsibility to draw up a lease that is both fully compliant with the law and 100 percent enforceable.
- A property manager fixes things that break. If something breaks, leaks, bursts or wears out — it’ll be the property manager’s responsibility to determine the cause of the problem and get it fixed.
- A property manager collects rent and handles evictions. In the event the tenant stops paying rent, the property manager will attempt to collect it by sending written correspondence and making phone calls. If the collection efforts fail, the property manager will determine that it’s time to evict. The property manager will have to send a legal notice instructing the tenants to pay or vacate the premises. After that, it’ll be time to file a lawsuit in court.
- A property manager keeps track of income and expenses. Finally, there’s the task of accounting. Tracking the income and expenses for a rental property isn’t just a good financial habit — it’s the law.
What does a property manager cost?
The average property manager charges somewhere between 50 and 100% of the first month’s rent as a finder’s fee and then 8 to 10% of the monthly rent. A renewal of an existing tenant would not generate a finder’s fee. If you are fighting for income, a property manager can feel like a large stone around your neck.
But, a great property manager enables you to stay on the right side of the law.