If you are looking to get into the rental property business you need to first consider how many properties you are looking to obtain for your portfolio and if you are going to be able to manage them on your own. Some people are looking to take on the job of landlord where others are simply looking for passive income so it's important to decide right from the start which one of these people you are. If you are the latter, then you may be in need of a property management company to take over your responsibilities as landlord. Allow us to outline a few questions regarding the rental property industry and you can see for yourself whether you want a property manager or not.
Are you a Handyman?
When it comes to managing rental properties it goes without saying that things are going to break down and need fixing. Not only does this depend on the type of care your tenants take with the home but the age of the home as well. Very few investors spend hundreds of thousands of dollars on rental homes which means the homes are generally older and therefore often in need of repair. First, you are going to find yourself inundated with calls, depending on how many homes you own and if you are not a handy person who can fix things yourself you are going to have to make many calls in order to get the problem fixed.
You will not always be lucky enough to have outstanding tenants and unfortunately part of being a landlord means running around trying to collect the rent at the end or first of the month. This can be a painstaking job and one many people do not enjoy.
Do you want to deal with the eviction process?
As an investor it is illegally you are familiar with the eviction process of your state or community and this can be a very exhausting process. This is when a property manager can really come in handy because they know this process like the back of their hand and can execute the proper paperwork in no time, saving you a great deal of time and frustration.
Just from these three questions you have no doubt already decided what type of rental property investor you want to be. If you've decided to find a property management company it is important to do the necessary research because not all services are alike. You want to make sure the people you are paying to take care of the rent collecting, the eviction processes, and finding new tenants and fixing what needs to be fixed within the home is getting done properly. Searching online is the best way to find out how the property managers of your area really perform. Often people will post their views of a certain company and this can be a great benefit to someone starting out. Also do not be afraid to ask for references from previous owners. Hearing or reading some testimonials will give you peace of mind!