If you own a rental property is it worth your money to hire a property manager to look after your investment? This topic has generated some healthy debate over the last week on a online forum I follow called Bigger Pockets where thousands of Real Estate investors come together and share ideas about the business.
To save you from reading 50 posts on the issue here is what I gathered as the consensus. When you manage from out of town or have a full time job that does not allow you to deal with your property the benefit comes two fold – access and time. Obviously when you are out of town a local property manager will be able to get eyes on your property when you cannot. Also a full-time property manager is dedicated to your property in that they should solve your problems when and where you cannot due to distance or your full-time job.
A lot of owner/investors worry that a property manager will overcharge or even take a cut of repairs. Also the statement, “no one will take care of my property better than me,” kept making it into the conversation. Theses are emotional responses to what should be an unemotional enterprise. If you hire the right property manager, someone you can trust it becomes a “bottom-line” game for you as the owner/investor. With automated software like appfolio you can login see your properties numbers. With this software the tenants are connected directly to the handymen and you and/or the property manager can have right of approval on all work orders.
Finally the real reasons you need a property manager. Knowledge equals $$$. The life cycle of an investment property begins with the initial offering by the landlord for rent. A knowledgeable PM will know exactly how to price your property to get the best tenant at the right price point. Next is the day to day management. A PM with automated software like appfolio can be completely transparent with the investor and tenant making every action viewable by all parties. Finally tenant turnover, when a property is coming due a PM has daily interactions with people who want to rent properties. Having this access to clients allows a PM to potentially place new tenants with no gap in service. As a DIY landlord you may experience a 30-90 day vacancy which on most homes can cost thousands of dollars out of pocket. Also knowledge of Landlord/Tenant Law. Experience with Tenant placement and grievance issues keeps landlords out of court. A knowledgeable PM can protect a landlord by explaining the finer details of laws such as here locally the Florida Residential Landlord and Tenant Act.
If you live in the Jacksonville area and would like Pacifico Properties to manage your investment property or if you are looking to get into real estate investing contact me today!