We've all bitten off more than we can chew more than once in our lives. While believing in yourself is an excellent quality to have, being aware of your own limitations and how they may adversely affect your business is even better. In this article, we point out five signs you need a property manager to help you identify when the management tasks are becoming a little too much for you to handle.
The Properties Begin to Show Signs of Neglect
Property management is a very demanding field. There are multiple tasks that you have to tend to on every property; often, they require long hours of labor, lengthy paperwork, and a substantial amount of money.
One property is hard enough to manage efficiently, and two can be very challenging at times. But if you own and manage three to four, you probably barely find time to take of yourself. In fact, chances are your properties are also suffering from neglect, and it will start to show in the form of piling up maintenance and repair tasks.
You Spend a Substantial Amount of Time Travelling
If you own properties in a different city, you will be traveling back and forth, and that is no way, shape, or form cost-effective. It will not only tire you out but also your vehicle, and you will have to spend a substantial amount of money on vehicle maintenance and other traveling costs.
There may even come the point when you may find yourself waiting for multiple tasks to accumulate before you make the trip to the properties, and that is indicative of very inefficient property management. Your property may end up paying the price and start to deteriorate, which will lower your Return on Investment (ROI).
Incomplete Maintenance Records
As a property investor, it is essential that you maintain all maintenance records. They help you deal with bad tenants, get you a good deal on your insurance premium, and more. It can also help you negotiate rent and increases your property's life span. If you don't have maintenance records, you will lose out on rent and end up paying a higher premium on your insurance.
Owners and landlords don't have access to the kind of resources that property managers do. A landlord will spend a substantial amount of time conducting market analysis, drafting a listing, sifting through potential tenants, conducting interviews and property showings, and finalizing the list. Then starts drafting of the agreement and completing the legal paperwork, after which the tenant finally moves in.
It's a lot of work, and if it's not part of your job, you may end slacking off. However, elongated vacancies lower the property's value and give future tenants a negotiation edge.
High Property Management Cost
For any investment to be profitable, the owner must conduct a cost-benefit analysis. Many think the property managers' fees will add to their expenses when in actuality, it reduces overall costs through efficient management.
We've mentioned the most common signs you need a property manager. You can also read our blog on the benefits a property manager provides homeowners to understand why we are big proponents of letting the experts do their job.