A lot of people struggle to decide if they should hire a property manager. People often ask themselves, is it worth the money? Is it even that difficult? How much time does it really take?
Well, those are good questions, but before you add another “to-do” to your plate, ask yourself these four questions before jumping in.
Does Legalese Make Your Head Hurt?
There are pages after pages of legal rules that govern the landlord-tenant relationship. Not only are these rules complex, they evolve constantly. The consequence of not knowing them can be tens of thousands of dollars.
If you want to self manage then you need to be committed to learning the existing laws and staying on top of all the changes. You also need to make sure your paperwork is updated regularly to stay in compliance as well.
So, if you like to read legal jargon and are comfortable staying on top of what’s required, then maybe YOU don’t need a property manager.
How Do You Want to Spend Your Time?
Most people already have a full plate, and often severely underestimate the time it takes to self-manage. Think about your last few home projects. Did they get done on time and on budget? Be honest…
So, ask yourself, how much is your spare time worth?
Do you really want to spend the limited free time you have managing property, or, would you rather be spending more time with family, friends, relaxing, or pursuing a passion that recharges you?
That being said, if the idea of coordinating maintenance, writing lease violations and reviewing the latest laws fires you up, then maybe YOU don’t need a property manager.
Do You Excel at Managing Conflict?
Like all relationships, they are great until they are not. You and your tenant might be 2 peas in a pod for the first few months, maybe even years, but at some point the lease will come into play. This is because no one is perfect, and that can lead to lease violations.
When that time comes, will you be able to do the right thing and enforce the lease, or will you cave?
If you like to please people and have trouble advocating for yourself, then a property manager could save you a lot of heartache and stress.
BUT, if you have no problem laying down the law (in a courteous and respectful manner) then maybe YOU don’t need a property manager.
Note: enforcing rules is one thing, but doing it in a way that maintains the relationship is part art and part science. As they say, you may win the battle, but lose the war (they move).
Privacy Matters to Most People, What About You?
If you’re a landlord, you’re on call 24/7, and yes, that includes evenings, weekends, and holidays. Why? If there is a maintenance emergency your tenants need someone they can call to address the problem, or you risk severe property damage, or worse a lawsuit.
Don’t forget, being on-call also means you need to be in cell phone range at all times.
The tenant also needs to know how to serve you in case of a legal dispute so in most cases, they will have your home address.
While most tenants are reasonable and don’t show up at your house when they are upset, some do.
If you want the freedom to be where you want to be and don’t want to worry about surprise visits, then hiring a property manager is a great way to outsource those headaches.
BUT, if you love to be hands on and don’t mind being available 24/7, then YOU probably don’t need a property manager.
The Decision
Playing to your strengths and designing the life you want is important. If that includes adding “property manager” to your resume, then great. All we ask is that you take it seriously and work to be one of the “good landlords” out there. Your tenants deserve that.
BUT, if you don’t want to bury your nose in legalese, give up even more free time, learn to be a mediator, and be on-call 24/7, then we recommend hiring a professional property manager.
You’ll be glad you did.
