Top 10 Situations a Landlord Hires a Property Manager
In this article, we will answer one of the most commonly asked questions: When should a landlord hire a property manager? From our experience of working with over 500 landlords, these are the top 10 situations when a landlord decides to hire a property manager. Reason #1: Late payments The number #1 situation when…
In this article, we will answer one of the most commonly asked questions: When should a landlord hire a property manager? From our experience of working with over 500 landlords, these are the top 10 situations when a landlord decides to hire a property manager.
Reason #1: Late payments
The number #1 situation when a landlord should hire a property manager is when their tenants start paying rent late, and they need to take steps to talk with them when collecting rents. A property manager should know the eviction and collection process by heart and will be able to follow the very strict guidelines to bring the tenant to court should it be necessary.
Reason #2: Relationship with the tenant is too close
Another common situation we see landlords in is when the relationship with the tenant is too close and personal. They become “friends” and feel bad asking for the money or continually make concessions. A property manager will provide a neutral 3rd party that will help you collect the rents that you deserve to be paid or to deal with tough situations without emotions getting involved.
Reason #3: No increased rents in years
You haven’t increased rents in years specifically due to fear of complaints/repairs. We see it all the time. A landlord might say, “My tenants have been here for 5+ years.” A fact they are usually proud of and should be. However, they usually follow up this comment with, “Well, I haven’t raised the rent in all those years.”
They do this because they are either trying to be nice or to try to minimize calls/complaints from the residents. This is a situation in which an owner should hire a property manager as a landlords’ expenses such as water, taxes, insurance are going up constantly, and rent needs to increase at the very least with inflation. Your property is an investment, a business. A property manager can help you increase rents, even if by a reasonable amount year by year.
Reason #4: No qualified vendors
We see tons of situations where a landlord gets stuck with repairs they are unable to do themselves, or worse yet an emergency such as no heat or no hot water that puts them in a serious liability situation. A property manager should have a list of reliable vendors they can call 24/7 to resolve any maintenance issues that come up.
Reason #5: You worry about your property constantly
Your property should not be a dark cloud following you around, yet for some landlords, it affects their personal lives, creating constant worry, lack of sleep, or even not going on vacations in fear of something happening. A property manager will be able to handle calls around the clock and relieve you of your stress and provide you peace of mind.
Reason #6: You are losing money
They could be losing money due to vacancies, court cases, or unexpected maintenance. This is the toughest situation for an investment property to be in and to hire a property manager, as many see it as an additional expense, but that is a penny-wise, pound-foolish mentality. A property manager should be able to help you budget, plan and most importantly help you avoid money-draining situations such as vacancy and court cases along with proactive maintenance that is more affordable than emergency calls.
Reason #7: You hate phone calls
Your dreams of owning investment properties can quickly turn into a nightmare when your tenants won’t stop bothering you. At first, it was an email, then texts, and then escalated to phone calls. We have even seen situations where owners let tenants know where they live and they start knocking on their door. A property manager will create separation and owners will never have to worry about hearing tenant complaints or worry about what to say that may get them in trouble.
Reason #8: Your tenants went from a lease to TAW
Landlords can find themselves with vacant units in the middle of winter or caught off guard when a tenant gives 30 days notice to vacate when they are a TAW, this happens when the original lease expires, and the tenants don’t sign a new lease. This is usually due to forgetting or not knowing how to create a lease. A property manager will help you send out lease renewals which we do up to 9 months in advance, ensuring that tenants are always on a lease or that you have sufficient time to market your property eliminating any chance of vacancy.
Reason #9: Your property is slowly deteriorating and losing its curb appeal
A once beautiful investment property without proper maintenance and upkeep can get rundown and lose its curb appeal quickly. The result is lower rents, less demand, and worst of all, lower quality of tenants willing to live in deteriorated conditions. A property manager who conducts regular inspections and walkthroughs will ensure the property is well-maintained, and can even offer suggestions on how to maximize the value and potential of a property.
Reason #10: A landlord gets sued
This is every landlord’s worst nightmare. A landlord can get sued for thousands of reasons, and ignorance of rules that must be followed does not give them an excuse when it comes to the court system. Many states are very tenant-friendly, and landlords can be responsible for triple damages if found guilty. On top of this, legal fees can run in the tens of thousands. A property manager will help you navigate and follow all rules and regulations to ensure compliance, and most importantly, keep you out of court.
If you or anyone you know is currently experiencing these situations or any other property related headaches please feel free to reach out so that our team at Green Ocean Property Management can help.
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