Buying a home is a huge accomplishment, something that you should never undertake lightly, but buying a home as an investment property is different. That’s because, in addition to all of the usual concerns around purchasing a home, such as ensuring you have adequate financial resources, you’ll also need to handle a wide array of daily management issues.
With that in mind, it’s worth considering hiring a property management company to handle some of those tasks. Though it will cost some money, you’ll likely find it saves you more than it costs.
We’re currently living through unusual times. That’s undeniable, but after months spent navigating the COVID-19 pandemic, many of us have fooled ourselves into thinking that we’ve got things under control. Meanwhile, many established rental properties are in trouble because they aren’t being properly managed. That alone should be enough of a reason to consider hiring a property manager – because you don’t need to take on more responsibility in the midst of a crisis.
In addition to ensuring your properties are well managed while you’re dealing with the stress of the pandemic on your own life, this is a good time to consider hiring a property management group because they have had time to devise plans for the current situation. That includes developing a safety strategy for how to deploy maintenance teams and dealing with nonpayment and eviction moratoriums. You don’t want to take that on yourself.
Tenant Placement In Tough Times
The housing market is rocky right now. Some people still need to move, whether for work or school or because of family circumstances, and many are facing unusual working conditions. The pandemic has also caused pricing fluctuations across the country. Even during ordinary times, though, screening tenants and showing the property can be a lot of work.
One of the best things about working with a property management company is that they take on the responsibility for screening tenants and placing them in your property. Some even offer a tenant placement guarantee as assurance that they will consistently perform the necessary due diligence and choose the best people for your rentals.
Creating Some Distance
If this home is your first rental property, you may not be familiar with the unique challenges built into property management relationships, specifically when it comes to your role as landlord. Whether or not you’re prepared for it, if you’re the landlord and the property manager, you’re on call around the clock – and you can’t be friends with your tenants, no matter how much you like them. This can be hard, especially if you’re also neighbors. Or, on the other hand, you may find yourself in a contentious relationship with your tenants.
By hiring a professional property manager, it’s much easier to maintain a professional relationship with your tenants, which is critical when it comes to ensuring the financial success of your investment. Property managers also have the necessary tools to set boundaries on their time, such as access to a dedicated maintenance hotline. There’s just no way for you to own a property and take around the clock calls, but emergencies do happen. Having a property manager on staff, however, lets you sleep through the night or take a vacation without worry.
As an alternative (or alongside) to hiring a dedicated property manager, it might also be a good idea in your property investment venture to establish a strong network of helpful contacts and tradespeople, should something go awry. In their guide to property investment in the UK, RWinvest state that “having a trusted network of tradespeople is a great way to ensure any issues are resolved as smoothly as possible”, and also that you may be able to end up with better value renovations and repairs through partnerships.
Any experienced homeowner can tell you that the work never ends when you own a home. Something always needs to be repaired or tended to. Disaster strikes when you least expect it. Once you add tenants into that equation, things only become more challenging, which is why you need a property management team on your side. Their expertise and support can make a world of difference.