Owning rental property is a reliable way to generate long-term, passive income, but it takes a great deal of work. For example, you have to make sure your tenants are taken care of while ensuring you don’t violate any local, state, or federal landlord-tenant laws. However, this is easier said than done.
Many first-time landlords find out quickly just how much work is required to own profitable rentals. Most of them choose to hire a property manager rather than tackle it on their own, and here are 4 reasons that’s a sound decision.
Is gaining more free time worth the cost of hiring a property manager? For most landlords, the answer is yes. You can always earn more money, but you can’t create more time.
The less time you spend handling property-related tasks, the more time you’ll have to live your own life. When you hire a property manager, they’ll handle all the tedium involved in owning a rental and will tackle the more nuanced requirements.
For instance, Green Residential supports property owners in the greater Houston area by marketing and filling vacancies, scheduling inspections, and managing evictions – all tasks that require expertise to do correctly.
If you’d rather play a sport, pursue a hobby, start another business, or spend more time with your family, then working with a property management company will give you the time you need.
Having a property manager working on your behalf is a great way to protect yourself from expensive legal mistakes.
Imagine having to evict a tenant for breaking the lease. You give them notice to vacate, but they won’t leave. You file a lawsuit, and when you get into the courtroom, the judge dismisses your case because you didn’t properly serve your tenant.
This situation sounds like a nightmare, but it’s unfortunately common. Laws that dictate how to serve evictions are specific, and if you don’t follow the law to the letter, the judge won’t let the lawsuit proceed. You’ll need to start over and serve the first notice again, but this time, legally. If this happens to you, you’ll spend even more money on court fees and in the meantime, your tenant might damage the property in retaliation. If your case is heard anyway, you could end up paying your tenant a hefty judgment.
Discrimination claims are another potential issue many landlords face. Sometimes they’re legitimate, but not always. Some tenants are just looking for ways to trap their landlord in a violation, and if you don’t know how to proceed, you might get hooked into doing something that triggers a lawsuit. In a worst-case scenario, when anti-discrimination laws are violated, a problematic tenant might win the legal right to remain on the property.
Landlord-tenant law is complex, and you can’t afford to make mistakes. By hiring a reputable property manager, you can be confident that laws will be followed.
When you bought rental property, did you expect it to be a full-time job? If you’re like most investors, you probably didn’t have a realistic perspective at first regarding what it takes to own rentals.
There’s no getting around daily, mundane landlord duties. Someone has to do it, but it doesn’t have to be you. If you’re tired of having a full-time job, a property manager is a convenient solution. You won’t have to collect rent, chase late payments, or send any notices and you’ll never have to be the bad guy. All of your daily landlord duties will be professionally handled for you.
Some people are better than others at staying on top of responsibilities. If you’re someone who struggles with a multitude of tasks, hiring out your landlord duties is a wise move. As stated earlier, you don’t want to risk breaking landlord-tenant law accidentally, but you also don’t want to forget about repairs your tenants have reported since ignoring issues can hurt you.
To be a successful landlord and keep your tenants happy, you need to be highly organized and not let anything slip through the cracks. If you struggle with this, hire a property manager to ensure nothing is forgotten.
At the end of the day, your decision to hire a property manager (or not) depends on how much work you’re willing to put into your rental properties. If you don’t mind doing the hard work, there’s nothing wrong with that. On the flip side, if you prefer generating passive income without getting involved, hiring a property management company will help you achieve that goal.
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