Educational Resources

Do I Really Need A Property Manager?

Many people find real estate investment to be a financially profitable endeavor. However, the skill sets (research, financial analysis, negotiation, etc.) required in the successful acquisition of rental property at a bargain price are often very different from those skills required to maintain and create value in an existing asset.

Many successful investors focus on their core strength and delegate or outsource non-core skill sets. There are only so many hours in a day. Where are your hours best spent?

Property management can quickly become overwhelming and unpleasant for most investors. There is not as much glamour in fixing toilets at 1 a.m. as there is in bragging at a cocktail party about the great real estate deal you scored. Great property management companies offer value in many ways. The four most significant factors you should consider are:

 

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1. Time

One of the biggest areas where a property management company can make a difference is in saving time for the real estate investor to focus his/her efforts on investing.

Property management requires:

• Long hours – Early to late
• Odd hours – Weekends, evenings, sometimes nights
• Hard work – No time off

Ask yourself:

• Are you well organized?
• Do you have excellent time management skills?
• Are you willing to work weekends, evenings, and even nights?
• Are you willing to deal with a backed-up toilet at 3 a.m.?
• Are you willing and able to visit the property regularly?
• Are you willing to commit the time and effort to stay on top of rental markets?

 

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2. People

It's a service business. Are you prepared to deal with:

• Difficult tenants?
  • Mean, obnoxious, unpleasant, verbally abusive tenants
  • Difficult and challenging personalities
  • Adversarial – confrontational relationships
    
    
• Delinquent tenants?
  • Consistently Pay their rent late
  • Refuse to vacate the property, requiring legal action
  • Break lease agreement
  • File bankruptcy
  • Contractors performing shoddy workmanship

 

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3. Key Property Management Skills

• Service oriented
• Fair but firm attitude
• Cool head under fire
• Constant multi tasking
• Patient
• Persistent
• Emotions always in check
• Computer literate
• Detail oriented
• Meticulous about paper work
• Basic accounting skills
• Good negotiator
• Mediation skills
• Comfortable with confrontation

 

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4. Legal And Regulatory Aspects

There are many laws, rules and regulations at the federal, state and local level affecting property management

Are you familiar with:

• The deadline to account for itemized charges on security deposits?
• The security deposit limitations?
• The time permitted for a tenant to pay rent after the non-payment notice is served?
• The notice period for terminating a month to month tenancy?
• The tenant repair and deduct rights?
• The rules regarding the discovery of mold?
• The rules regarding lead-based paint?

If you have questions about whether or not to hire a property management company, please give us a call today.

 

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