When talking about property management, there are a lot of myths that go around and we are using to address some of the most common ones. Here are our top 5 Myths about Property Management.
#1: A Property Manager Won't Take Care of My Home Like I Would
A good quality property manager should be looking out for your property and your best interest. They need to make sure that you are happy with their services, otherwise they would lose you as a client. When you hire the best property managers, you are hiring a team that is looking out for your property as a financial investment. Like most financial portfolio managers that get paid by commission percentages, when you don't make money, neither does the property manager. It is important to a good property manager that your house is in good condition, with reliable and responsible tenants who pay rent on time. They should be thinking of your investment in the long term, looking at what improvements or repairs are needed in order for your rental property to continue making money for you. As Seth Williams at RETipster.com says, "Your property manager has a vested interest in you doing well. They're in your corner because if you do well, THEY do well."
#2: Renters Will Destroy My Home
Most people who are thinking about renting their home out hear horror stories about tenants that have completely destroyed the property and left without paying anything. It's true that these stories have happened for some, but when you hire a quality property manager who takes much care finding qualified, responsible tenants, you shouldn't be worried. It's impossible to prevent all tenant issues, but when interviewing property managers, it's important to ask about how many tenant issues they have and how many evictions they've handled.
#3: Involving a Property Manager Will Complicate Things
If hiring a property manager makes life more complicated for you, you've hired the wrong manager. A quality property manager should take the stress of managing your property off your shoulders. When dealing with a property manager, you don't have to handle the subcontractors, accountants, legal professionals and others that you will work with when managing your property on own. You also don't need to worry about if your repairmen has done a good enough job - or if you hired the right one - because a quality manager will have many connections with vendors in the area. You also don't need to worry about if you or your tenant is following the law. A great property manager will understand Missouri's Landlord-Tenant Law to keep you protected. Letting someone else handle the stress of property management will make your life easier and your rental experience more enjoyable.
#4: Hiring a Property Manager is Too Expensive
This is one of the biggest myths about property management. Most property management companies don't get paid unless there is a tenant in your property, so if they don't do their job, you don't have to pay them. Additionally, you should learn which expenses you have as a landlord that are tax deductible. Some of the costs you incur when you put your home in property management can be written off at the end of the year. They also understand the rental market and how to quickly get quality tenants to rent your property, which means your property spends less time vacant. After all, one vacant month can mean you have to pay the mortgage yourself, which (in some cases) can cost you more than entire year of property management fees.
#5: I Can Easily Manage My Property by Myself
Many landlords successfully manage their rental property without a manager and never run into trouble. For these people, they often spend many hours working on finding tenants, collecting rent, and coordinating maintenance (or repairing things themselves). When starting out managing your rental yourself, these tasks seem manageable, but over time, you start giving up nights and weekends to handle emergencies at your rental property. If the passive income that you expected to get from your rental seems to take an active role in your life, you may want to pass that responsibility off to an expert.
When considering renting your property, it may seem like a property management company is not worth the investment. But once you start trying to balance your work, personal life and rental property, you may find that hiring a property manager would take the stress and worry off your shoulders. Check out our Landlord Resource Kit for tools to help you get started as a rental property owner.