Should you hire someone to take care of your rental properties?
Rental properties can be a great opportunity to bring in some supplemental income, but they can also be a tremendous amount of work and cause added stress. Knowing when you should manage your properties yourself or when to hire a professional can be a tough decision but we’re here to help.
Start by answering these 5 questions:
- Do you live in the area?
- Is the property in impeccable shape?
- Are you handy or have good/reasonable vendors?
- Do you have the tools?
- Do you have the time?
Do you live in the area?
If you don’t live in the area it will be difficult to manage your rental property properly. Depending on the age or the last time the property was updated, it may or may not need extra attention. If stopping by to fix something is a little out of the way for you, this time will eventually add up and ultimately just be very inconvenient. If you hire a property manager, they can be onsite quickly to visually inspect whenever something comes up. Overall saving you time and your tenant grief.
Is the property in impeccable shape?
As mentioned previously, if your property is a bit older it may need some extra attention. If your property is in impeccable condition, and you’re not going to need continual upkeep you should be in good shape. However, if not you could be dealing with a lot of service calls that would take up a lot of your time.
Are you handy or have good/reasonable vendors?
Finding the right vendors takes time. You’ll go through a lot that are good, bad, expensive or have poor time management skills. If you’re handy and you know how to fix things, that will be incredibly valuable. It can save you on cost if you choose to DIY. It can also help you when you’re hiring vendors to understand what they’re talking about and determine if their quotes are fair or if they are trying to rip you off.
Do you have the tools?
We’re not talking about a hammer, or a drill, or some screws. Do you have the ability to advertise? As realtors, we have one of the greatest resources to be able to get your rental property out on websites to be shown to thousands of people. We can help reduce your vacancy time. Another important tool is accounting software, at the very least, QuickBooks or some sort of property management software to be able to keep track of your income and expenses. That alone might be reason enough to hire someone else to manage your property.
Do you have the time?
Everyone thinks they have the time to manage a property. In reality it takes on average one hour a week to manage a single property. Some weeks you may have nothing to do with the property, besides collecting rent and taking the 20 minutes to log it. You could go 3 or 4 weeks even without getting a service call, that’s fantastic! But if you average out the time over a year, I’m betting that rental property is taking up one hour of your time per week. So, doing the math will give you a good idea of whether its worth it or not. What is it going to cost you to hire a professional? Calculate what you make at work, do you make $20/hour… $50? Then evaluate how much you’re going to pay a property manager. In many cases it’s around 10%, let’s say the rent is 1,500/ month. Your property manager fee would be $150 per month.
150 x 12= $1,800 / 52 weeks in a year = 34.61.
Is it affordable? is it worth it?
If you have any questions or need any recommendations don’t hesitate to reach out!