Investing in a property manager may seem like a far-off goal, especially if you're just getting started with building your rental portfolio. Yet, the sooner you call in a team of professionals to provide assistance and guidance to you, the sooner it directly impacts your bottom line!
As a Columbia property management company, we may be a bit biased about the value a property manager brings to a real estate investment portfolio. That’s why we want to offer a few things to think about when considering if it's time to hire a property manager!
Location Matters: Where Do You Live?
It’s no longer necessary to live close to your real estate investments. A long-distance investment could prove to be more lucrative to you, especially if you live in an area that doesn’t have a strong rental market. However, if you don't live close to the property, it’s wise to invest in a property management company that can handle the work for you locally. Having someone close to handle every rental task makes a big difference in managing it properly and maximizing your returns.
What if you do live close? For property owners buying real estate close to home, devoting all of their free time to dealing with renters and handling maintenance emergencies can become overwhelming. If you have the time to do so and it's working for you, keep it up! However, if you're ready to get your time back and enjoy better returns, let a property manager in Columbia take on the work for you.
How Many Properties Do You Own?
Another key component to hiring a Columbia property management company is time management. If you have numerous real estate properties and your goal is to have a large rental portfolio, you need to have enough time to manage those properties properly.
As your portfolio grows, it becomes increasingly difficult for property owners to be at all of their rentals often enough. Two emergencies can happen at the same time, leading to complications in your ability to meet all of your renters’ needs.
If you plan to own numerous properties, having a property management company in place right now can set you up for more success. As your portfolio grows, the right property manager helps maintain consistent cash flow and boost ROIs for each rental.
Are You Dedicating Too Much Time to the Investment?
Some people can make rental property management their full-time job. They spend their days working on their property and enjoy the investment income. However, if you are working a full-time job outside of managing your properties, that may not be possible.
For successful rental properties and a growing portfolio, management can require "full-time" efforts. The time you'll need to dedicate to your rentals depends on factors such as:
- The number of properties you own
- The size and scope of the property (does it need a lot of ongoing repairs?)
- The amount of work you plan to do yourself (including repairs and upgrades)
Don't forget to factor in your availability. If you work a full-time job while you are managing rental property, do you have the flexibility to take a phone call in the middle of the day for a renter emergency? What if you need to meet with an attorney to sign contracts? Can you take time out of your day to show the property when prospective renters are available to see it? If you're juggling a career plus rental management, it's time to outsource property management to professionals in Columbia!
Can You Afford It?
Sometimes the decision to hire a property manager comes down to costs. It might seem like you're saving money to skip the property manager and associated fees. However, when you factor in your time spent on each property and out-of-pocket costs for materials and tools to take care of repairs, are you really saving money?
Investors must also consider the return on their investment when weighing DIY management vs. working with a Columbia property management company. In many cases, property owners find that outsourcing to a property manager actually saves you money over time—plus, they see a boost to their bottom lines.
DIY management isn't "free" when you understand that a property management company reduces expenses for investors by:
- Saving money on background checks
- Reducing costs on marketing investment
- Managing renters affordably
- Helping to secure competitive costs for quality repair and maintenance services
- Minimizing the amount of time the property sits vacant
There’s no doubt that you need to be able to afford the investment in a property manager—but often, it can pay for itself over time, especially as your rental income starts to grow.
Should You Hire a Columbia Property Management Company? Yes!
A Columbia property management company supports investors when building a successful real estate investment portfolio. Get your free time back and maximize your operating budget (and bottom line) when hiring the right property manager for rentals! We’re here to help you at Renters Warehouse BW Metro. Connect with us to learn more about what we can do for you and your investments.
To learn more about finding the right property manager, download “The Guide to Finding the Best Property Management Company,” available to you, free of charge.