Who needs a property manager?
Rental income can be a lucrative source of income for people who own properties. But managing a rental property can be challenging. The list of tasks is long, from collecting rent to maintaining the property.
That's where property managers come into the picture. Property managers are trained professionals who take responsibility for a property's upkeep, rental collection, managing tenants, and a lot more.
If you're having a hard time managing your rental properties, you might benefit from the services of a property manager. Let's learn more about it.
Do you need a property manager?
Whether you need a property manager depends on your needs and circumstances. Let's go through the different scenarios where property managers can be helpful.
You live far from your rental property
Many investors in Canada purchased investment properties outside of the area they live in. These properties can be over an hour drive away, but because these areas are outside of major urban areas like the Greater Toronto Area or Greater Vancouver Area, they are typically lower in price and provide positive cash flow.
It can be challenging to manage a rental property remotely. You must be physically at your property for property showings or managing any issues. If you are in a similar situation, consider hiring a property manager. They will take care of everything from finding tenants to collecting rent. You wouldn't have to step out of your house at all for any task related to your rental property. Hiring property managers make a lot of sense if you live far from your rental property.
You want to scale your real estate portfolio
If you are a full-time real estate investor, the thought of hiring a property manager must have crossed your mind at some point. That's because property managers are equivalent to business investments for real estate investors. Let's understand why.
The goal of a real estate investor is to get the best deals from around the country to invest in. To do this, they have to spend the majority of their workdays researching and building networks.
The time-consuming, day-to-day tasks of managing rental properties take a backseat for investors who are focused on growth and expansion. As a result, hiring a property manager is often the best (and only) option they have.
Hiring a property manager is imperative for financial growth if you are a real estate investor.
You want to avoid dealing with legal issues
Rental laws vary from province to province and change from time to time. If you own a rental property, you need to make sure the actions you take comply with your provincial laws. For example, is your rental agreement is in compliance and properly worded? How much notice do you need to give the tenant before you enter your own property? Do you know the procedures and forms behind legally asking your tenant to end the rental agreement?
Property managers are a great option in these cases. It's the professional responsibility of property managers to be well-versed in rental laws. If you are working with a property manager, the pressure of knowing and implementing rental laws is off your shoulders.
You want to get the reliable service providers
Managing a property requires the services of builders, plumbers, tradespeople, suppliers, etc. The cost of maintaining your rental property can get very high, especially if you don't have a long-term business relationship with contractors. Issues at the property can pop up at any time and it’s important to have reliable contractors to service your property quickly. Imagine being on the receiving end of a stressed tenant when the heater stops working in the coldest time of the year.
Property managers specialize in finding reasonable and reliable contractors. As they manage multiple properties, they can get a better deal for you from their service providers as they give them consistent business.
You want to get the best rental rate
Do you have professional photos of your property? Do you know what appeals to tenants in your property’s area? You have to market your properties to differentiate them from the hundreds or thousands of similar properties. Once your property has been listed for rent, you need to be able to sort through the applicants to select the best one.
Doing all these things requires considerable time and marketing skills. Hiring a property manager is the best option if you want to avoid educating yourself about marketing and go through the tenant application process.
