Treating your investment as a business is essential in making the best out of it. While managing your rental property is fulfilling, it is not always ideal. Some circumstances will require that you let go of control. How do you know when it is time? Consider the factors discussed below.
1. Time Limitation
When you are managing the property, you serve as the point of contact for tenants. For them to feel appreciated, they will require prompt response to issues, and that you answer phone calls even when they call during odd hours. When you are engaged in other activities other than managing your property, it is likely that your clients and property will suffer neglect. If you don’t have enough time on your hands to devote to your business, delegate the task of managing your rental properties in Centennial, CO to your choice of reputable professionals. By so doing, your business will get enough attention to succeed.
Property management requires skills, which usually come with experience. You will need to know how to collect rent, compile records, file taxes, knowledge of the law governing tenancy, and what is required during evictions among others. Also needed is tolerance in dealing with your clients and timeliness when addressing complaints and conflicts.
Where these skills are lacking, a high tenant turnover and limited cash flow become regular problems. Property managers have both the experience and skills to run your property professionally. If you have no experience, you may want to let go the control as you learn the loops until you are confident enough to handle all management aspects.
It is possible to invest in property away from where you live. Traveling from your primary residence to where your property is whenever you need to check on things is not only time consuming but expensive too. A property manager will offer invaluable services in such a case.
4. Multiple Units
While you may have started with a single unit and managed it just fine, you may realize that this gets harder with a growing portfolio. Eventually, the responsibilities become too much for a single person to handle. Time to give attention to all units also becomes limited. Having a management company handle everything for you ensures thorough work. It also allows for centralized management of finances and services.
5. High Turnover Rate
For you to get a return on your investment and eventually break even, your rental units need to be occupied. This may require that you market and screen tenants appropriately. When doing this, you have to consider the law on fair housing to avoid lawsuits. At times, even with all this in mind, it is possible to experience a high vacancy and turnover rate. Property managers have a professional network that can help lead to new and long-lasting tenants and are better placed in screening tenants. They are also skilled in identifying and handling any issues that may be dissuading clients from occupying your units.
While self-managing your rental property does not come at an additional direct cost, challenges in the process may end up costing you much more in lost income and even lawsuits. Hiring a credible property manager takes away most of the worries and leaves you to enjoy the perks of being a property owner. All this with the assurance that your investment is being professionally run.