The first question is…What is a property manager? A lot of people get confused and think that all a property manager does is collect and deliver rent checks. This of course is false. A property manager does collect checks, but also takes care of the property if something goes wrong, rents out vacant units, deals with tenant complaints, and arranges Tribunal and eviction issues when they arise. It is important to ensure that all the Provincial or State rules are being followed.
Some investment property owners manage their own properties, but most hire a company. The issue with managing your own properties can be quite costly. There are opportunities to increase the rent, improve the property, and decrease expenses. Most owners miss these opportunities because they are busy working or spending time with more important things like family. Sometimes all it takes is that one bad phone call from a tenant on a Saturday night while you are with family or at the cottage to realize how valuable your time is. For the minimal costs involved in getting professional help, it is definitely worth investigating.
The costs range between 6% to 12% of the monthly rent paid by the tenant to the landlord. Other costs include repairs, legal fees in the case of evictions or problematic tenants, and any renovations or improvements the landlord needs or wants. The key is to find the right tenant to begin with and most challenges are avoided.
The real question you have to ask yourself if you are sick of dealing with tenants is…What is your time worth? If you enjoy fixing toilets and chasing rents, then managing your property may be the way to go. If you want to take your real estate investing to the next level, hiring a property manager can give you some time to breathe and start running your part time real estate business as a real business.