Several apartments in the building sat empty for months, and the stream of maintenance requests ate up so much time that it was barely worth the extra work for the revenue that came in. If that scenario sounds familiar to you it may be time to consider hiring a property management company.

Property managers handle much of the hands-on, day-to-day work that goes into owning and operating rental properties like apartments, single family homes, and other real estate. A good property manager takes a lot of the hassle out of being a landlord and can be well worth the money with the right person or company handling things.

What does a property manager do?

Simply put, a property manager handles the day-to-day operation of your rental property, so that you can focus your energies elsewhere rather than spending all your time putting out fires (maybe even literally). They are the in-between for you and your tenants.

Property managers handle things like:

• Coordinate maintenance: Property managers set up and orchestrate maintenance and fulfill work orders on your properties, either themselves in the case of light handyman work or by hiring out the work to professionals. They keep regular and incidental maintenance off of your plate.

• Tenant relations: Property managers deal directly with your tenants, fielding complaints, screening new tenants, and taking maintenance calls.

• Collect rent: Property managers collect all rent and are responsible first and foremost for maximizing the amount of profit a landlord can get from their property. They work to keep units full and make sure all rent is deposited on time.

Pros and Cons of Hiring a Property Manager

As a landlord, there are basically two approaches to property management; either you do it yourself, or you hire a professional to take care of things. Hiring a property management company has a unique blend of benefits and drawbacks that should be considered before deciding whether to hire one or not.

Benefits of hiring a property manager:

• Saves you time that you can spend on other investment opportunities: By taking on the work you’d otherwise be shouldering on your own, a property manager or management company frees up your time so that you can pursue new or neglected investment opportunities.

• Removes the stress of managing the property yourself: Having fewer headaches is always a plus, so it may be well worth hiring someone to handle the constant stream of complaints, work orders, and walkthroughs that managing property entails.

• Get detailed information on operations of the rental property: Your property manager will serve as your liaison for your properties and will keep you notified of important developments and trends.

Drawbacks and risks of hiring a property manager:

• Cost: On average, a landlord can expect to pay between 7% and 10% of the rental value of your property for management services. Essentially, the first month of a year-long lease should cover the cost of management for that unit.

• Distance from your investment: Some owners like to be hands-on, so the distance from managing your property may not be for you.

Making sure you hire the right manager or team: Hiring an ineffective property manager can cost far more than just their pay. Be sure to hire from a reputable firm to ensure you get the most benefit from your manager.