The following article was provided by www.webuyyouromahahouse.com.
Some people go into multi-family investments thinking it will be a breeze. After dealing with collections, maintenance, complaints, and repairs, they will soon realize that being a landlord is a lot of work! At what point should you hire a property management company for your short-term rental? That is a decision many landlords face.
Do the benefits outweigh the cost? Each situation is different.
Here are some things you may consider before hiring a property management company.
What They Can Do
Identify your target market
An experienced property manager knows that a successful short-term rental starts with identifying your target market. This goes hand in hand with all aspects of your investment, from marketing to decorating your rental.
Don’t let the wrong tenant profile ruin your experience as an investor. Let the property manager use their experience to find your niche market.
Market the Property
They will be able to showcase and highlight the property across many platforms. Property management firms often subscribe to the most effective online tools. They will promote your property in a more visible location using print media and web materials. In addition, they will post signs, list on the MLS, schedule showings, and process applications. Marketing the property is one of the most important jobs of a property manager. If people don’t know about the property, they will not see it, therefore, not rent it. No one wants a property sitting empty.
Your property manager has experience in making sure it is easy for guests to find you. They will work with you to build the right description of your listing by optimizing key words that they know customers are likely to use when looking for a short-term rental.
Raise Your ROI
They will take a good look at the living spaces and the grounds. They should immediately recommend cosmetic touches and upgrades that will boost ROI. A good property manager will be abreast of what competitive properties offer as upgrades and unique property features.
They should provide information about taxes, deductions, and necessary paperwork for the property. A good property manager will help you maximize your investment for your short-term rental.
Manage Maintenance & Repairs
Your property manager will keep up with maintenance and make repairs you might not know. Experience goes a long way here. Knowing what to look for and the most effective or efficient way to resolve the problem is a skill learned over time. They will receive multiple bids for repairs, ensuring your property obtains the best service at the lowest cost.
If you own property out of town, a property management company is mandatory. They know all the professional contractors needed to fix whatever may be the problem. The last thing you want to do is look online to hire a contractor at midnight for a job you have no idea what is needed to get done.
Why you need a property manager
You own many properties
If you own more than one property or unit, being a landlord may be a full-time job. Piles of paperwork, vendor relations, tenant needs, maintenance, accounting, and so on will eventually make your head spin. A property manager is crucial to managing multiple investment properties.
You need assistance managing funds
The accounting aspect alone can turn into a full-time job. If you do not choose to employ a property management company, you should make sure you have a competent accountant running your books. There are many deductions available to property owners.
You are an absentee owner
You can’t properly manage a property you own in another state if you live clear across the country. Trusting friends to help “keep their eye on it” is likely to end in a dispute with the tenant or your friend. It is advisable to employ a reputable and local property management company: someone who is looking out for your best interest.
When you are ready to hire a property management company, keep in mind that they will likely charge 30-35% of the monthly rental value. Some people would keep this money in their pocket, while others see the incredible value in having someone else handle the dirty work!
The Answer Is Clear
Hopefully, after reading this article, the answer is clear. Hiring a property manager can make your life as an investor less hectic and the experience much better. Buying a property investment with the goal of turning it into a lucrative short-term rental income stream can become a nightmare if there is poor management. Don’t go through that nightmare and instead make your passive investing truly passive!