As a landlord, are you handling your own property management? If so, ask yourself – is it worth the time and headache to be the property manager? The only downside to hiring a property manager is the cost. The industry standard in Montana seems to be around 10% of rent collected for this service.
But are you really maximizing your time and happiness by trying to save 10%?
Why invest in a property manager?
In our opinion, the benefits of outsourcing property management far exceed the cost. In fact, don’t even think of it as a cost. Property management is an investment.
Most of the time you can custom design exactly what role you want the property management company to play and what you want to keep on your plate. There’s no need to pay for services you’d like to continue providing yourself.
Professional property managers don’t just handle the headaches and problems that pop up. They also maintain a healthy distance between you and your tenants. Tenants will not last forever. That means at some point they will leave – sometimes under less-than-ideal circumstances.
Property management companies can ease this transition, find new tenants, and keep everything running smoothly. That’s worth its weight in gold!
What can property managers do for you?
Vetting New Tenants
You don’t have to list ads, answer phone calls and emails from potential tenants, do background research, job research, rental history, etc. A property manager can find a great tenant for you without the headache.
Good tenants tend to look for properties managed by professionals. Conversely, less-than-ideal tenants tend to respond to independent Craigslist ads and individual phone numbers for a place to rent.
Better tenants = Fewer headaches and more paid rent!
Property Maintenance
Every property has something happen to it at some point. Tenants seem to love calling at 2 AM telling you the toilet is clogged or that a light is out. Isn’t your time and inconvenience more valuable than dealing with these issues?
All good property management companies have a maintenance staff or company they rely on to handle these problems. It’s quick, usually pretty cheap, and you never have to be inconvenienced to handle it. Your tenants will appreciate it, too, because they won’t have to wait while you hunt for the right tradesperson to come fix the issue.
Organization & Paperwork
Between leases, insurance, repair receipts, and the mountain of other paperwork that comes with real estate, it’s nice to have someone in charge of organizing it all and having it at their fingertips when needed.
A good property management company will do that all for you and get it for you if you need it. It’s basically a built-in assistant for your real estate business.
Evictions
Eviction proceedings can be costly, time-consuming, and create real tension between a landlord and a tenant. Property managers can not only help with an eviction process but can usually help avoid it altogether.
Working with tenants to leave on good terms, creating alternate payment arrangements, or figuring out other ways to put money in your pocket can happen – and a property manager can handle most of this heavy lifting for you.
In the event a legal eviction must occur, a good property manager can also help you find counsel, and assist with the process to ensure everything is done correctly.
Checking on Your Property
Every so often, it’s important to check on your property to make sure the tenant isn’t destroying it. This is a total inconvenience to a landlord and requires scheduling and potentially uncomfortable conflict when you’re at the property.
Property management companies handle this routinely and know how to make tenants take care of the property and ensure it continues to be taken care of.
Invest in property management — it just makes sense!
When all the services a good property management company provides are considered, the decision is usually a no-brainer. You’ll find that the percentage of rent it costs to retain a property management company is worth it.
They save you much more than they cost over the course of time. They keep headaches, unwanted work, and inconvenience out of your life.
You’ll have more time to enjoy life and not worry about your real estate investment!
Marty is a former criminal prosecutor in the Cascade County Attorney’s Office and now uses that experience to defend those accused of crimes. A University of Montana School of Law graduate, Marty focuses his practice on personal injury and criminal defense and is a premier DUI defense attorney. He is also well versed in the insurance claims industry and has negotiated significant settlements with nearly every major insurance company.