One-man shows are better preserved for movies. In real life, you need a team. You need a collaborative effort to succeed in the game of business. When you’re starting as a real estate investor, especially a landlord, you will need someone to manage your properties. You can’t do it all alone, even if you’re doing it full time.
In the beginning, it’s okay to try being a property manager yourself. You can familiarize yourself with different aspects of the business, but as you proceed further, you’ll need outside help. A reliable property manager steps in to make your life easier and more convenient. In this post, we discuss why you need a reputable property management company to assist you along the road.
What is the #1 complaint we hear about real estate management firms?
“The service is expensive, and they are not responsible for property maintenance and care.” For the second part, you need to find a trusted company with a crew who knows how to tackle ongoing repairs and maintenance. For the first part, understand that this service is not expensive. If you look at the average cost, you’ll need to pay 8%-12% of the monthly rent. Some companies also charge you a flat monthly fee that is used to cover minor repairs.
When you’re just beginning, you start with one or two houses. You have a family and perhaps a day job. It’s stressful when tenants call you at 11 PM to inform you about the leaking pipe or problems with the heating system. Either you’ll go yourself or call a technician to fix the issue. In either way, it will cost both time and money. You can save yourself the trouble by working with a property management firm. Most companies will deal with minor repairs. If repairs are expensive, the costs can be negotiated as per your agreement.
It is challenging to get a house rented and keep it occupied. Fortunately, experienced managers know how to spot a good tenant. You can leverage their connections, experience, and marketing knowledge to attract tenants for your home.
Without a tenant, you can’t generate an income. Let’s be clear. Without a good tenant, you can’t earn a profit. Another benefit of hiring a property manager is that you get good tenants. Most of the time, tenants will connect with a local management firm. So your manager can bring you tenants, and they (companies) also have a screening process in place. That doesn’t mean you don’t interview the tenants. By all means, make sure that you investigate about the tenants and then hand over the keys. However, it is always helpful to have a support system on your side.
As a landlord, it’s always challenging to deal with late (or no) payment. Because of a genuine problem (or personal issues), tenants can miss a payment or two. Some people will simply try to deceive you. They will try to take advantage of your situation. It is a great relief to have a property management company that knows how to deal with such circumstances.
If you need help or want to know about property management companies in the local area, contact us. We can give you recommendations and tips. Heritage Home Solutions LLC is a residential solutions company based out of Albuquerque, New Mexico. We help home sellers with all kinds of issues. Whether you need to sell a house because of bad tenants, negative cash flow, divorce, foreclosure, or tax issues, we can help you. Click here to get a fair cash price for your property.