It’s not an uncommon thought to cross any entrepreneurs mind to lease or rent out a home to make some extra money on the side (especially in the current state of the economy). There’s good reason to, of course. As always, there is still the age old dilemma of time versus money.
If you are seeking other ventures or planning on expanding to renting out other properties, taking on the role of landlord can be a bit daunting of a task. Unforeseeable maintenance, screening tenants, uncomfortable rent collection, etc. can end up taking up more of your time and money than you had originally anticipated.
If someone is really considering renting out their property as an investment, unless this one property is their soul focus, enlisting a property manager can be a wildly more effective use of your time and money. If you are already sent down another career path, renting out your property can be a great way to make some extra money and enlisting a property manager can ensure that it is taken care of.
Top Things to Consider If Hiring a Property Manager Is Right for You:
- What level of maintenance experience do you have? As a property manager, you will need to be available to your tenants for maintaining the property. This includes dealing with plumbing issues, electrical outlets, lighting, and anything that can be hazardous to the lifestyle of your tenants and taken care of in a timely manner.
- Are you willing to deal with the awkwardness of rent? If a tenant is late on rent, this means you’re late on getting paid and if it’s not taken care of can lead to a poor relationship with the tenant. Finding the right balance of authority and consistency is important to this aspect. Professional property managers have created systems to make this process bearable and efficient.
- Will you be able to learn, keep up with, and comply with housing regulations? This takes quite a bit of research to learn and then requires a consistent follow up to stay up-to-date with exactly the law is stating. Professional property managers have the time and staffing to manage this.
- Do you have the time? This cannot be stressed enough. Especially if this is only one of your potential investments, this can take more time than anticipated. With how sporadic life occurs for tenants (rough weather damaging the home, faucets not working, etc.), the changing of housing regulations, and not to mention whatever is going on in your own life this can easily become a full time effort.
Perhaps the smartest business move someone can make with capitalizing on their property is to hire someone else who can help carry the burden. Just as when a business grows more employees become essential, so does renting out your home or property become a task not easily taken on by one.