As a real estate investor, one of the most important decisions to make after purchasing a property is how it will be managed. A successful investment strategy requires a smart approach to property management—but what that means varies depending on the individual investor. Many new investors choose to start out with a self-management approach, while others may decide it makes more sense to hire a property manager from the get-go. Either way, most investors at some point will be asking themselves, “Should I hire a property management company?” To help you with your decision, here are a few key signs that it’s time to consider hiring a property management company:
You have multiple properties, and/or you want to grow your real estate investment portfolio, and you can’t (or don’t want to) do it on your own.
If your goal is to grow your investment portfolio, you will inevitably reach a point when you simply can’t manage your properties on your own. That tipping point is different for everyone, but in general, if you have more than two or three properties it’s probably time to hire a property management company.
Related: What do Property Managers Do?
You don’t have time (or you’d rather spend your time on something else).
Let’s face it, owning and managing real estate properties takes time. Whether you’re a part-time or full-time investor, you likely have a variety of responsibilities and goals outside of your investment properties. If you feel like your property management duties are detracting from the time you spend on other priorities—be those professional or personal—hiring a property management company is a great solution.
You don’t live near the property, or you travel frequently (or want to).
If your real estate investment strategy includes a portfolio that spans different markets, or if you are not going to be nearby one or more of your properties for most of the time, hiring a property management company is a must. The right property manager will not only be able to handle the day-to-day tasks and emergencies that require a local presence, they can also help inform and manage your overall investment strategy in a variety of markets.
You’re overwhelmed or stressed out by your property management duties.
Property management duties are one of the greatest sources of stress for real estate investors. Hiring a company unburdens the workload and stress of the day to day responsibilities and other aspects of property management that can be confusing or overwhelming—such as legal issues, marketing, etc.—giving you back your time, energy, and the peace of mind you need to be a successful and happy investor (and person!).
You decide it’s worth the cost to have your property managed by someone else.
While hiring a property manager means you’ll make a little less money than if you were self-managing, there are many compelling reasons—including, but not limited to those above—that it’s worth taking that small hit. The reality for most investors is that, more often than not, the tradeoff in income is more than worth it because of all the benefits and services property management companies provide.
Are you considering handing your real estate investment portfolio over to a property management company? Contact us today to learn more about who we are and how we can help!