Are Property Managers Worth It? Building the Best Team in 2023
Why is it that some real estate investors swear by their property managers, while others stand alone taking care of their investments?
While property managers play a crucial role in the life of a real estate investor, they are not always required. So, whether it is worth it hiring a property manager or not is often up to the investor and their own unique circumstances.
However, that does not mean that we are not capable of helping you assess your situation and determining whether you should hire a property manager, or if you are better off doing things on your own for the time being.
But first, before you start looking at property managers, let us help you get financing that you can manage yourself by clicking the link below for a free strategy call.
What is the Role of Property Managers?
Before we can decide whether it is necessary for you to hire a property manager for your investment properties, it is important to take a look at the role property managers play in maintaining and operating a real estate portfolio.
In short, a property manager is responsible for many of the key elements in operating your investment properties. This can include advertising and screening tenants for your rental properties, executing lease agreements and ensuring tenants follow their leases, collecting rent, managing regular maintenance and inspections and much more.
Sometimes, investors will hire individual property managers to take on these tasks alone. However, as portfolios grow, many investors turn their eyes towards larger property management companies which frequently delegate certain tasks to certain property managers while dividing the responsibility of taking care of your investments across multiple qualified property managers and team members.
Why are You Considering Hiring Property Managers?
One of the most important questions when determining if you should hire a property manager is the question of why you are hiring one in the first place.
Often, investors will begin to look for property managers once their investments grow beyond their own capabilities. After all, property management can quickly become a full-time job and it can be quite taxing on you trying to keep an eye on all of your investment properties while also living your own life – especially if you have another job outside of your real estate portfolio.
Each investor’s reasons may be different, but what is important is that you take the time to assess your own reasons for looking for a property manager before committing to hiring anyone.
What Are Your Goals as an Investor?
Another key question to consider when deciding if you need to hire a property manager is what your goals are as a real estate investor. Often, these goals will greatly impact the need for a property manager and how soon in your investment journey you should begin looking for one.
If you are an investor looking to explore something new and get a hands-on experience in something you have not tried before, you might not want to get a property manager too soon because they will take over many of the tasks you may want to learn how to do yourself.
Meanwhile, if you are trying to use real estate as a way to earn passive income and experience more personal freedoms, a property manager is going to be an early member of your team that will allow you to have that personal freedom you are looking for much sooner.
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How Much Experience Do You Have Managing Real Estate?
The next question you need to ask yourself when deciding if it is worth it to hire a property manager is how much experience you have managing real estate. If you are a new investor, you will have a lot to learn regarding some of the crucial ins and outs of successful real estate investing. (Of course, we are here to help you with that.)
So, it may be helpful to hire a property manager part-time to assist you and help you learn the ropes so that you can get a better handle on your portfolio. Then, once you have things under control, you can decide if you still need the property manager, or if you are prepared to handle things on your own.
Alternatively, if you have plenty of experience in property management prior to investing in real estate, you may not need to hire a property manager straight away because you know what you are doing. Or perhaps this may motivate you to hire one sooner as you have witnessed first-hand the value they can bring to an investor through their work and experience.
How Large is Your Investment Portfolio?
Finally, one of the most important factors that will help you decide if it is worth it to hire a property manager is the size of your real estate portfolio.
Even if you are skilled enough to manage your own portfolio and you have plenty of time to dedicate to property management, eventually things can grow beyond the capabilities of a single person and you will need to look at property managers.
If you reach a point where you need to take a step back and hire a property manager because your portfolio is too big for you to manage on your own, do not be discouraged. In fact, you should be proud of yourself for building such a strong foundation in your investments that you can reach this point in the first place.
Maintaining Peace of Mind as a Real Estate Investor
In conclusion, property managers are a valuable team member for any real estate investor to work with at some point in their career. Even if you do not need to hire one straight away, once you do, they are capable of providing you with the peace of mind to relax and trust that your investments are in good hands.
If you would like to also gain peace of mind knowing that your mortgage payments are optimized for you and your investments, look no further than our team at LendCity. We work with a wide network of lenders in order to help you secure the best rates for each of your investments throughout your entire investment journey. To learn more and to get started, visit us at LendCity.ca or give us a call at 519-960-0370 Alternatively, click the link below to book a free strategy call with our team here at LendCity.