In reality, not everyone requires a property manager, however, under the right circumstances, hiring one could result in major time savings as well as increased profitability from your properties.
But what does a property manager actually do?
A property manager’s job is to essentially run your rental properties for you. They take care of every step of the rental process, including managing pricing and availability, taking bookings, communicating with guests, collecting payment, dealing with check-ins and check-outs, laundry and cleaning. This comprehensive system means that you as the owner can take a hands off approach to rental and enjoy truly passive income.
If you’re debating managing your property yourself or hiring a manager for the task, you can ask yourself the following questions:
Is your rental property close to home?
Most properties demand constant care, requiring frequent visits to greet guests, solve arising maintenance issues, handle guests’ complaints and collect the rent. Having a property which is far from your home means frequent long commutes on a regular basis. In some instances, you may even get called out at a moment’s notice should a matter arise that requires your immediate attention. Hiring a property manager can be invaluable when dealing with urgent issues, whilst saving you both time and communicating costs. If you live close to the property however, frequent visits may not be such an inconvenience.
Do you have time to manage your rental property?
Managing a rental property involves heavy time commitments. If you have a full-time job, it is almost impossible to give the property the attention that it needs unless you can dedicate a good amount of your time to it. It is also important to consider that time is money, so you should determine if the time saved by hiring a property manager can be used to generate even more income, spent with family, or furthering your career.
How many rental properties do you own?
The more properties you own, the more time and effort you require to maintain them. At a certain point, owning and running rental properties will become a full-time job in itself. Multiple units, especially if they are spread out over different properties and localities, will require a substantial amount of work, which could get quite complex for inexperienced owners.
How much experience do you have managing property?
Sometimes it is difficult to ensure that your property is giving you the greatest possible return on your investment, and learning as you go along can become quite expensive. Not knowing where to hire a good repairman, or taking the wrong approach when dealing with guests’ issues can quickly take away from your potential income. A property manager would have plans in place to fix any issue in as short a time as possible.
Are you having trouble finding guests and knowing how much to charge?
Another issue that comes with lack of experience is not knowing how much to charge for your property. Charging too much could lead to a lack of bookings while charging too little means that you won’t be maximising your return on investment. A property manager who is well versed in pricing strategy can implement optimal pricing, and change this based on variables such as the season, demand and availability.
What is your tolerance level when dealing with guests?
The final consideration is how good you are at dealing with guests. Your aim as an owner is to ensure the guests are satisfied with their stay as this will lead to positive reviews and recommendations which are vital to any rental. If you are a people’s person that is willing to deal with any sorts of queries and requests, complaints and emergencies, it can be one of the most rewarding parts of running a property, however, if that isn’t the case, a property manager will take care of all guest interactions for you.
In conclusion, a property manager is the right choice for you if you would like to have more time on your hands to work on your career or focus on the things you love. They will deal with any issues that arise and work to make your property run as efficiently as possible, giving you the greatest return on your investment.