The biggest decision, as a landlord or property owner, is arguably whether to use a property manager or not. The whole idea of being your own landlord can be exciting and as well tedious. If you own a property rental, dealing with tenants can be a tough time.
When then should you hire a property manager or why do you need a property manager? You probably must have thought about these questions. However, before you make the decision, there are certain things you should consider. Below are some of the things to consider before choosing a property manager or not. Before we go into details of things to consider:
Who Is A Property Manager?
A Property manager is a person or company charged with the responsibility of managing a property on behalf of the owner. It is usually done at an agreed fee. That is, the property manager is a real estate professional that is hired by the landlord or property owner in order to manage their property. A property manager is also known as an estate manager.
What this also means is that the property manager gets to manage the day to day activities of the property. However, the amount of responsibility depends on the property and the terms of agreement. The terms of agreement is usually between the property manager and the property owner.
By now, you should have an overview of who a property manager is and what they do. So the big question is, should you hire one or not? The points below should help you make your decision.
How many property unit do you have?
Being a landlord of a single property has its own amount of stress. However, it cannot be compared to owning multiple properties. The more the number of properties you have, the more the responsibilities. Especially for a rental property, it only means one thing - more tenants. With more tenants comes more complaints, maintenance issues and sometimes, vacancies.
The process of managing all of them alone can be tasking. Having multiple properties means more time to properly oversee the properties and manage the cash flows. In some cases, it might even require you go from one property to another. The whole task can be overwhelming and this should help you decide if you need a property manager or not.
Is Your Property Close To Your Home?
The proximity of your property to your where you live is another factor to be consider. Managing a property that is a street away or in cases that you live within the property can be easy. It cannot be compared to having a property that is miles apart from where you live.
For instance, living in Lagos and having a property in Lagos can sometimes be easy depending on the location. It is, however, a job when you have a property in Ogun state and you live in Lagos. Now, imagine you have multiple properties away from where you live. It can be very stressful - physically and financially. Hiring a property manager makes sense in cases like this.
If you are yet to own a property, you should definitely consider the proximity of the property. Check out PropertyPro.ng for a list of properties available for sale within your location.
Do You Have The Time To Oversee The Property?
In making the your decision, ask yourself if you have the time to oversee the property. The truth is, being a landlord is a job on its own. There will be cases that need your attention; some of which might be urgent and also require physical presence. What are the chances that you can live your location at the moment?
Inasmuch as the job of a property manager is to manage your property, you can be rest assured. It is expected that enough time is put into managing your property as it is there job.
Can You Afford A Property Manager?
You should also assess your finances before deciding to hire a property manager. This is very important because the services they render don't come free. As mentioned earlier, they come with a fee and you definitely should know if you can afford it.
On the average, property managers charge between 4% and 10% of the monthly gross income of the property. Depending on the contract agreements, you can agree upon how much they charge. The fee charge for multiple properties is usually cheaper than it is for a single property.
Do You Have Enough Experience To Manage A Property?
There are chances that it is your first time as a property owner or landlord. Knowing what to do and when to do them can actually take time. Hiring an experienced property manager until you learn the ropes can be the right choice for you.
Though most people prefer to learn on the job - as they go on. You don't want to end up hiring a wrong repairman, take forever to fill a vacancy in your property. All these will one way or the other affect your potential income. Knowing how best to tackle issues also come with experience and it's not something you just come by. Therefore, it makes perfect sense if you hire an experienced property manager until you can manage the property yourself.
With the above tips, if you didn’t skip any of the points, you should be able to decide whether you need a property manager or not.
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