What to consider before hiring a professional residential property manager.
Investing in a residence is a thoughtful process, even if you already own a primary home. Same is true when hiring a residential property manager. If you’ve owned one home or multiple properties, hiring a property manager is an important decision. It might not be right for everyone. However, there are certain things you might consider to help you decide if enlisting the services of a professional is the best choice for you.
1. Where is the residential investment property located?
The distance between your primary residence and the investment property can be a major factor in determining whether hiring a professional home manager is the right choice. The greater the distance, the greater the challenge it is to manage. Time zones can make a big difference between having a delay or a timely repair in an emergency and. If your primary residence is miles away from your rental property it can be difficult manage complaints as well as emergency and maintenance issues.
If you prefer to be hands on, you should consider that the cost and your traveling time to the property may outweigh the cost of hiring a professional property manager. It may even save you money in the long term.
2. Can you afford your time to manage residential investment property?
Some investors work full time. If this is your situation, and you have your family and primary residence to care for, you might not have the capacity to give the investment property the attention it needs. Having a successful residential property, that brings return on your investment, may depend on hiring a professional residential property manager.
We are well aware that time is money. When you consider that managing a property takes time, you may realize that your time is more valuable than hiring a professional to manage the daily, weekly, and monthly obligations of home property management.
3. Look at Your Experience Before Hiring a Property Manager
If real estate is your investment and you are not experienced in property management, then hiring an professional home property manager might be a good decision. Some homeowners found that “learning on the go” can be frustrating and costly.
Home investors don’t always have the time to vet contractors. Homeowners will find that hiring the wrong repairman or contractor can reduce your potential income very quickly. Other location related errors such not understanding local property and housing regulations may also lead greater costs and wasted time.
4. Are you willing to hand over the responsibility to a residential property manager?
If you plan to rent your investment property, residential property managers can be managing everything from collecting rent to filing taxes for the property. They can be assigned to pay bills and coordinate housekeeping, landscaping, and pool services. They may even serve as concierge for tenants.
The question you need to consider is, are you ready to give a manager that much responsibility over your investment? They may be a professional residential property manager with the necessary experience, the question remains do they have passion for your investment property? The passion you feel will help them gain your trust.
All of us at Diamond Head Living, LLC hope that the considerations we offered in this post will help you. It’s a very personal choice, and hiring an outside manager may be the right choice for you.