Building a portfolio of rental properties can be a great way to diversify your investments and make some extra money, but being a landlord certainly has its share of headaches. When you own rental property, you are responsible for all the things that can go wrong, from a leaky toilet in the middle of the night to a broken window. That means you could end up spending a lot of your precious time making repairs and dealing with those common problems.
Related: Five Things You May Not Know About Becoming a Landlord
If you want the benefits of owning rental property without the hassles, you may want to consider using a property manager to take care of your property and collect the rent. These professionals help to reduce the hassles of being a landlord, by taking on the burden of the day-to-day management of the property. That can be a big help, especially if you plan to build a large portfolio of rental properties.
Of course, not all property management companies are the same, and you want to explore your options carefully before signing a contract with any of them. Before you sign up with any property management company, you want to check its reputation among renters and neighborhood residents. Some property management companies are not as responsive to tenant problems as they should be, and that could get you in hot water with your renters, and even with the local and state authorities. It is important to choose a property management company that can respond, as quickly to tenant complaints as you want.
It is also important to compare the costs associated with various property management companies. A property management firm typically takes a percentage of the rent roll as their payment, but not all companies charge the same percentage. It is important for you to understand exactly how much you will be spending before you sign up for the services of any property management company.
Related: 11 Costs First Time Real Estate Investors Should Consider
Once you have selected a property management company, it is important to check up on them and make sure they are holding their end of the bargain. Talk to your tenants and ask them if there are any issues. If you find a rash of complaints about problems the property management company should have taken care of, that should be a big red flag that something is amiss, and that it might be time to see out a more responsible company to take care of your property, your tenants and your real estate investment.
Would you rather have a property management company manage your property or go at it alone? Leave a comment, and let’s chat!
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