When you hear the words "investment property," you likely think only of money. You count the amount you'll have to spend to buy and upkeep it.
The truth is there's much more that goes into it. There's time, mindpower, and manpower.
Hiring professional help is another investment with the same goal of making your property turn a profit. Read on to learn three signs you should hire a property management company.
1. Time and Stress
Landlords are always on call. They spend their days handling tasks such as:
- Tenant screening
- Leasing
- Marketing
- Property inspections
- Collecting rent
- Maintenance
- Bookkeeping
- Addressing tenant complaints
Owning multiple properties multiplies the workload. Being a real estate investor may not even be the only way you make money. You may have another job or a family to take care of.
It can all be a stressful experience without the proper tools in place. One of the best ways to reduce this is by hiring property management services. They handle daily tasks for you and give you back the one thing you need the most; time.
2. Tenant Troubles
The national vacancy rate for residential rental property is approximately 6.4%. A property management company can help you fill any vacant units. They'll use clever marketing tactics and attractive listings.
They'll also perform a thorough background check on every applicant. This prevents the risk of having tenants who are a constant source of complaints or consistently late on their rent.
They know how to communicate with and manage them once they move in. This means handling their complaints, handling leases, and completing evictions if necessary.
They can even help you get more money from rent. They know how to set a profitable but fair rental rate and make sure it's collected on time. This is even more important when the average renter is rent-burdened. They already pay over 30% of their income for housing and may struggle to make payments.
3. Geographical Distance
Starting small and local is affordable and easy. Owning rental properties outside of the town you live in can help you grow your investment portfolio. You'll get a larger range of investments in more markets that protect you from losses if one starts to go into a downturn.
The problem is that traveling to each property takes a large investment of time and money. You also may not be able to get there quickly enough to address tenant issues or complaints.
The better option is to get property management for each one. They'll act on your behalf, and you'll feel free to stay home or go on vacation.
Where Should I Look for Property Management?
There are several signs that a landlord should consider investing in property management. It may be wise if you need more time, are starting to get stressed, have problem tenants, or are far from your properties.
Austin Property Management uses a client-first, detail-focused approach. We understand all parts of the property investment process because our team is experienced in the real estate and tax and accounting fields. Contact us to learn about our range of services today.
