If the American Dream of owning a rental property and enjoying passive income comes crashing down, the aftermath can be unsightly.
There’s nothing wrong with investing in real estate, of course, but going about things the wrong way can cause serious issues and buyer remorse.
If you’re swimming in consumer debt, now’s not the time to take out a mortgage. You should have the financial flexibility not only to buy a rental property but also to maintain and repair it. There are many pitfalls that the experienced and inexperienced make after buying investment properties. That’s one good reason to consider hiring a property management firm.
Some investment property owners balk at going this route because of the expense — a percentage of rental income or a flat fee. Whether you hire one or not is up to you, but your decision could help or hinder your real estate investment strategy.
Here are three of the worst excuses some rental property owners use to avoid getting the help that property managers offer.
- “I Can’t Afford It”
Some rental property owners simply don’t want to part with any of their money. But that’s the wrong way to look at the situation. Hiring a property manager is a good move to maximize your investment and come out further ahead. You need to look not only at what you’ll pay for a property manager but also what you’ll get. And what you’ll get will justify the expense.
A property management company by your side can find you better tenants, collect rent, lessen vacancy time, handle maintenance and repairs, and help you avoid expensive and frustrating mistakes.
Considering that vacant units won’t generate monthly income, you should work with a pro skilled at minimizing vacancies. The right third party will provide the help you need to maximize your investment.
- “I Don’t Need Any Help”
It’s true that some people have endless energy and like to do things independently. Perhaps you’re one of those types. But you should ask yourself how long you can handle the ins and outs of being an investment property owner and landlord without assistance.
Even if you get a thrill out of providing customer service to tenants, performing upkeep on the property, and doing other related things, you also should achieve a good work-life balance.
Burning both ends of the candle will catch up with you sooner or later. Instead of taking on the responsibility of being a landlord alone, you should consider outsourcing that responsibility. It’s not about giving up control to a third party — it’s about getting the help you need. Going this route can ensure you avoid mistakes that jeopardize your investment.
- “I Live Close to My Rental Property, So I Don’t Need a Property Manager”
Sure, being close to your investment property will make things easier if you want to keep an eye on things. You won’t have to trek across town if you need to be onsite for one reason or another.
But living near your investment property doesn’t mean it doesn’t make sense to work with a property management firm. You can count on a reputable property manager to handle emergencies, arrange maintenance, and do other things that help make your rental property a more successful investment. As long as the property manager you hire is within easy reach of your investment property, you’ll be okay.
Whether you get help or go it alone is up to you. But if you want to increase the odds of a positive outcome, it pays to explore how a property manager can ensure your dream doesn’t become a nightmare.
