Property Management – Why It’s Important For Your Investment
When you invest in property, especially if it is your first time, it’s a really good idea to look at the option of a Property Management Company to assist you. They offer a wide range of knowledge, tools and resources within the industry that could take you months (or even years) to develop. Also, by choosing the correct Property Manager could mean all the difference between a failed or highly successful investment.
What is a Property Manager?
A property manager is a third-party service provider who’s tasked with taking care of your property/properties in exchange for a monthly/annual fee. They generally take the hassle out of running your investment. This is applicable to both Residential and Commercial real estate.
Usually, a property manager will manage the maintenance and repairs of the property and is also generally responsible for the following:
Marketing rental listings to attract potential tenants
Administering and enforcing leasing agreements
Collecting monthly rent payments
Keeping a record of financial statements and preparing reports for the owner of the property.
Maintaining positive tenant relations and initiating the eviction process, if necessary
A property in which you plan on renting out, no matter the size of the unit or building, is a serious time commitment. If you do not stay on top of the general maintenance, advertising for new tenants and maintain good relationships with your current tenants, you could have a failed investment on your hands. Therefore a property management company is a great idea, especially when you own more than one property.
So what are the benefits of a property manager and should I hire one?
As a third party service provider, a property manager will remain impartial and will aim to serve both the landlords and the tenants best interests. Whilst it is their job to keep the tenants happy, they also have a responsibility to maintain the landlords investment, and ensure that it is kept in the best possible condition. You will save yourself so much time and avoid the headaches that could arise from running a rental property. Instead, you will just be making money, which is why you invested in the first place, is it not?
Before you rush out and find yourself a property manager, here are some factors to consider.
You purchased the property in order to make a profit. Property management companies will not work for free. It is therefore worthwhile taking an extensive look at your budget and figuring out whether it makes financial sense. Secondly, you’ll need to decide whether you have the time to run this investment yourself. Often, tenant queries are made afterhours. If you cannot see yourself tending to the queries and having the time to look after the property when needed, a property manager may be the answer.
You will also need to take the location of your investment into consideration. If you have purchased a property that is quite some distance from your primary residence, you may want to consider the travel time and costs in getting to your investment property every time an urgent request pops up. You cannot leave a tenant to fend for themselves because you’re two hours away and will “see to it in the morning”. You’ll only be left with disgruntled tenants and eventually an empty property and failed investment.
At the end of the day, it’s your investment and therefore your decision as to how you wish to run it. You need to ensure that the investment suits your lifestyle and needs, and by choosing the correct property manager (or not) could make all the difference.
Should this seem like an option for your investment, Metric Investments has the tools, resources and profound knowledge on property and leasehold management in order to make your investment a success, so why not contact us today?
