To Self Manage or To Hire a PM – Know the Basics
So you’ve decided to start a real estate investing career by purchasing properties and renting them to tenants. If you’re new to investing, you might have assumed that you will take on all of the property management tasks involved with rentals yourself. However, it is important to understand how much time and effort it can take to manage rental properties, so you can make an informed decision about how you will handle your property management tasks.
First, you will be responsible for marketing your properties to locate tenants for your properties. While this might seem like an easy task, the challenge is to find tenants who are qualified to rent from you – that is, who have sufficient credit and incomes as well as have a positive rental history. By adequately screening tenants up front, you will help minimize the time you spend collecting rent and making repairs to units damaged by irresponsible renters.
In addition to finding tenants, you will be responsible for managing your renters. You will need to collect deposits and rental payments, respond to service requests, and deal with tenants who cause disruption in your properties. These disruptions can come in many forms, from domestic arguments, to all night parties, to HOA violations, not caring for the lawn, etc.
You will also need to manage repairs and upgrades to your rental properties. Your property management duties may include interior repairs, building upgrades, and maintenance of lawns and landscaping, among many others.
It is easy for real estate investors to spend the majority of their time on property management tasks, rather than on activities that are direct money makers. You might find that hiring a property management company to handle these tasks will allow you to be more productive, and to make more money with your real estate investing ventures. When you are looking for investment properties, it is a good idea to consult with an experienced REALTOR who owns and manages their own rental properties. Then that can help you navigate the process of either assisting you or can provide assistance in locating and hiring a reputable property management company.
February 5th, 2009 at 1:57 pm
I currently looking for a property managemnet company to managge my property in Washington state. I lived in Virginia state, I don’t know where and how to find a good property manager, and I wonder if you could provide me a referral. Thanks for your help.