Rent has risen 31% in Louisville over the last decade. This makes it a prime investment opportunity for generating passive monthly income. However, owning a rental property presents several challenges that can make the investment risky.
One way to reduce the risk is by working with a property manager. Look for these signs to know when to hire a property management company.
1. You Own Multiple Properties
Managing one property means you can dedicate all your focus and energy to that property. As you purchase additional rental properties, your time and effort become fractured.
It becomes progressively harder to juggle the duties of each property as you continue to grow your portfolio. Property managers utilize professional tools to optimize their management. This lets you focus on the big picture while they handle day-to-day operations.
2. You Have Limited Time
In addition to your rental properties, you have a life to live. This could include a full or part-time job, family, friends, and hobbies. Don't let your rental properties take away valuable time from your personal life.
By outsourcing property management, you can gain time back. A simple cost comparison can show you the value of a property manager. Instead of being on-call for your tenants, your management company will handle emergencies, inquiries, and needs.
3. You Have a High Vacancy Rate
Tenant screening and selection is the task that rental property managers struggle with the most. Unfortunately, a poor tenant selection process can be a costly mistake. As a rental property owner, you need to know how to attract, screen, and lease high-quality tenants.
A rental property manager can optimize your tenant selection process. In addition, they have significantly more experience. They know what qualities to look for that indicate an applicant will make a good tenant.
4. You Live Far Away
Owning a rental property in the city where you live gives you the ease of proximity. You can drive by when you want. You are familiar with local vendors that provide repairs and maintenance.
Unfortunately, the same cannot be said when you live far away from your rental property. It will require a time investment to drive to the property to see it. Then you will have to locate vendors and trust that they do a good job.
Hiring a local property manager means you have someone you trust who can easily put eyes on your rental property. They can quickly respond to emergencies. They also have relationships with local vendors.
5. You Have Evictions
Unless you are a real estate lawyer, you probably don't have the legal knowledge to represent yourself in legal matters effectively. While a property manager isn't a lawyer, they do have experience with landlord/tenant law.
A property manager can handle evictions. This ensures that problem tenants are timely handled. By legally removing these tenants, you can reduce the cost of lost monthly rent.
Property Management Company
If you have personal experience with one or more of these struggles, then it's time to consider hiring a property manager. You will see the benefits of hiring a property management company quickly. Your stress levels will drop while you enjoy more free time.
Request a free rental analysis and find out how a rental property manager can help you.