Why Hiring a Property Management Company To Handle Your Rental is a Good Idea

Property Managament

One of the easiest ways to increase your net worth is by acquiring real estate assets like multi-family units, single-family homes, condominiums, short-term rentals, etc. With tenants occupying units and paying rent, property owners receive a consistent amount of cash flow each month in addition to the equity they earn from their property with each mortgage payment.

However, while many property owners are quick to jump into real estate investing, they fail to realize that property management comes with a lot of added responsibilities. Sometimes, these added duties overwhelm property owners as they realize managing their rental requires more attention than initially thought.

Defining Property Management

Property management is described as the daily oversight of an investment property. These properties may be residential or commercial and may have multiple tenancies. Each property will require both administrative and maintenance tasks:

  • Administrative tasks include posting advertisements, vetting applicants, completing walkthroughs and inspections, and responding to calls and emails.
  • Financial tasks include collecting rent and paying for repairs, inspections, legal fees, advertisements, and other costs associated with managing the property.
  • Legal tasks include creating and negotiating leasing contracts or handling evictions.
  • Then there are maintenance tasks, like understanding the life of certain upgrades and maintaining existing equipment, like HVAC or water heaters.

Knowing When to Hire a Property Manager for Your Rental

Some landlords choose to handle certain aspects of property management and then turn to professionals to handle the more complex parts. Other landlords prefer to keep things handsfree, as their time is more valuable generating income elsewhere.

The involvement in their investment property comes down to personal preference and time.

For many landlords, handling one property—maybe even two is reasonable. Still, when the rental units exceed that amount, property owners become overwhelmed with the tasks associated with managing their rentals. If a property owner cannot manage all these tasks, they will eventually hit a limit on scaling their real estate portfolio.

Ideally, one would want their real estate portfolio to become a source of passive income. However, if someone is handling calls to repair an HVAC system in the middle of the night, that asset is no longer generating income passively. A property management company steps in to handle these tasks so that you can work on other projects to earn passive income.

Look for These Traits in Property Management Companies

Selecting a property management company doesn’t have to be complicated. Most landlords start with understanding their needs as a landlord. They list what responsibilities they need handled and then begin interviewing. Landlords should consider years of experience, past client referrals, and reviews when vetting candidates.

In addition, landlords must look at the candidate’s office location to their rental. If they need to be onsite quickly, how soon would they be able to get there? Emergencies in property management happen when one least expects it, and your hired property manager should have a staff member or repairman arrive at your property in a timely manner.

Need a Property Management Company in Northeast Louisiana?

Kajen Rentals has helped many local property owners manage their rental properties. If you have any questions about managing your rental property in Monroe, West Monroe, and Bastrop, contact us today.