Should I hire a property manager?
At some point, every income property owner will run into the big question: should I self-manage or hire a property management company to take care of my rental property?
There are pros and cons to managing your property yourself. Self-management can help you save on costs. However, when mistakes are made, they can be quite costly. That’s why we recommend working with a professional property manager who is well trained and experienced in all aspects of property management in Ontario – from understanding the RTA (residential tenancies act), to having great tenant relationship management skills, to dedicated to ongoing maintenance and repairs for your property.
When should landlords hire a property management company?
There are certain cases in which, without a doubt, you should hire a property management company:
You live out of town
If you own a property in Ottawa, but live in Kingston, there is no way around it – it will be near impossible to provide acceptable management.
You’re strapped for time.
Do you have a day job that commands a lot of your time already? Are you finding yourself busy with other commitments? If you don’t want to be the person that picks up the phone at 2am when there is an emergency, or spend hours taking care of rental listings, showings and property inspections, do yourself a favour and outsource it.
You own multiple rental properties.
Unless managing your properties is your only full-time job, if you own more than one rental property, it is best to partner with a company that can take care of management for you. Property management companies have streamlined processes and systems in place that make for an all around successful renting experience – for both you and your tenants.
You aren’t familiar with leasing laws.
As a landlord dealing with tenants, you need to understand tenant rights, leasing laws, rent control, and any other regulations around rentals. Mistakes can cost you, and may lead to conflicts, or even legal troubles. A good property manager will be familiar with the RTA and can help manage your rental responsibly.
Benefits of working with a property manager
Tenant relationship management
There is always a possibility of tension in the landlord-tenant relationship. Having a property manager can eliminate any potential problems or hostility that might occur. Your property manager will maintain the relationship, keeping you and your tenants happy! We believe that the best way to manage tenant relationships is to set fair expectations right from the beginning, treat everyone with respect and prioritize clear ongoing communication.
Yes, hiring a property manager can in fact save you money when you factor in property value adds, preventing losses from vacancies, and preventing costly repairs. You should also consider the dollar value of your own time. If you already run a business, this is even more important! Does managing your property take time away from other profitable activities – or even just things you love?
Deal with headaches
Running an income property is not without its surprises, and that means facing the occasional stressful situation. There are many headaches that can come with being a landlord, but hiring a property manager eliminates those stressful elements – leaving you with a cash flow generating rental and little work to do. Ask yourself – is saving that 10% really worth having to deal with 3am phone calls, handle rental marketing and resolve potential disputes?
Without the tasks of regular maintenance, filling vacancies, collecting rents and more, you can sit back, relax, and enjoy your return on investment. An experienced partner in property management can offer valuable perspective and guidance when it comes to your ROI. We always provide recommendations for how to improve your property, drive value and attract great tenants!
Quality Tenant Placement
One of the common fears we have come across is that your property manager will fill your vacancy with an unqualified candidate. This is not the case! A good property manager is looking out for your best interests, and wants to make sure that your property is rented out to respectable, responsible tenants who will pay on time and take good care of your property. This also makes relationship management easier!
So am I ready?
Only you can decide if you feel ready to hire a property management company for your property. It is always advised to work property management costs into your rental properties business plan (whether you self-manage or not) so that you can be sure you are covered for all of your needs down the line.
There is no “set” amount of time before you are ready for a property manager. You could be three years into being a landlord, stressed and burnt out, or have just purchased your first investment property and want to be sure you are protected and starting off on the right foot.
At the end of the day, working with a property management company will make your life easier, as they will take care of everything from tenant screening to ongoing maintenance and repairs.
Ready to learn more? Book a call with us, we’d love to chat and hear more about your income property!