When you first start as a property investor, the prospect of earning money from real estate is fascinating. You happily throw yourself into the task of property management; you renovate, screen tenants, and do all the little things that require doing in the rental.
In a short time, a pattern emerges, and your daily routine becomes fixed. But at a point, you suddenly realize that you are locked in a never-ending cycle of attending to tenant’s needs and trying to keep up with emergencies.
This is when you start to recognize that this was not the life you imagined when you first dreamed of becoming a property investor. And it slowly dawns on you that the time freedom you thought you would have is even further away from you now.
This is when you come face-to-face with the truth that you have, in reality, signed-up for a job with no closing hours or employee perks. You start to think that this could not possibly be the experience of all property investors.
At this point, you are faced with two choices:
- The first one will unshackle you from the property, allow your assets to grow on their own, and give you room to become the investor you dreamed of.
- The second will see your energies dwindle, your investments will grind to a halt, and you will slowly burn-out from the stress of managing the properties.
The first choice is to review your strategy and turn the rental over to a property manager. The second is to keep doing the same things you have always done while hoping it will work out somehow and someday.
Hiring a property manager to oversee your property is the key to unlocking its potential as a source of passive income. And this, without any doubt, was one of the main reasons why you ventured into real estate investing in the first place.
But to realize your dream of earning passive income from a property, you must implement a management strategy that allows the asset to remain profitable without your involvement. And the only way to do this is to hire a property manager.
When you hire a property manager to manage your investment property, this is what you do for yourself:
- Hiring a property manager allows you to separate your time from your ability to earn income from the rental property.
- Hiring a property manager removes geographical limits on your investments because you will no longer need to invest only in properties that are close to you.
- It will also allow you to grow your portfolio infinitely because your assets’ performance is no longer tied to your limited time and abilities, or your location.
But what do property managers do that enable them to deliver these advantages to you? What are the specific roles of a property manager in a rental property?
The property manager’s job description
The property manager oversees all aspects of making an investment property profitable. Their primary roles include, but are not limited to:
- Maintaining the property
- Carrying out repairs
- Helping the landlord set rental rates
- Marketing the rental
- Screening prospective tenants
- Collecting rent
- Handling evictions
- Communicating with tenants
And everything else necessary for the success of the rental, including making sure the property meets municipal requirements and guiding the property owner in tax matters.
How a property manager affects your business
As a result of having a property manager to look after your rental property, you will experience the following in your life:
Improved effectiveness
Your time will be freed, and you will be able to give attention to other things where you have greater competence. Rather than cannibalizing other aspects of your life by stealing time from them to give it to the rental property, the different parts of your life can flourish side-by-side. As a result, you can have many streams of income, in reality.
A more simplified life
A property manager frees you from the hassle of screening tenants, dealing with calls at odd hours, and chasing tenants for the rent. It frees you from the headache of continually scrutinizing your interaction with tenants to make sure that nothing you do violates the established rules for landlord-tenant relationships.
Professionalism and profits
Tenants love professionally managed rental properties, and property managers know how to handle a rental professionally. That professionalism creates a perception of higher value in the tenant’s minds and allows you to charge higher rents. Also, managing a rental through a property manager injects more objectivity into the relationship with tenants, which tenants usually love.
In summary, when you hire a property management company, you make the transition from your job, working as an unpaid property manager, to a dedicated property investor. Also, you harness the expertise of others and give yourself a chance for exponential success. In a nutshell, you set yourself on the path to fulfilling all the reasons you originally became a property investor.
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