Like any investment, keeping your current rental, buying a new rental property or converting your current home into a rental, may seem like a leap of faith, and to some degree it is. In today’s market, given the low interest rates and record high rental rates, it is the perfect way to diversify your investments, but with rental properties, there are many moving parts that can make or break your investment.
Rental properties are versatile as you may have them for short-term or long-term investments. No matter the length, there is the deep lying concern that may linger in your subconscious: should you manage the property yourself or hire a reputable property management service to eliminate the guesswork and hassle of being a landlord? Neither decision is an easy one to make and both will have costs involved. As we have all heard before, “Time is money” and this saying definitely rings true with being a landlord. Now it is up to you to know which route is best for your present and future endeavors of being a landlord.
Let’s first lay out some scenarios as well as a list of priorities that go hand in hand with owning a rental property.
Now let’s look at some qualifying questions to make sure that you have the fair ability to get your best return on your investment if you were to manage the property yourself:
So to keep it simple, if you fall into scenario 1 or 2, understand the pertinent priorities to owning a successful rental property and said yes to at least half of the qualifying questions, then it probably wouldn’t make sense to hire a property manager. But just in case you are curious why hiring a property manager can in fact save you money, then please, keep reading.
First you will see the typical costs of allowing a reputable property management company to manage your investment. Second you will find a condensed list of what to expect when owning a rental property. All in all, the burden of the costs can be greatly counteracted by allowing a professional to handle the burden of the expectations (along with the other great ROI benefits linked in the next paragraph).
You will usually pay:
Here are a few examples of what you should expect when owning managing your rental investment:
Now how would a property management company actually become an investment and increase your ROI instead of being a liability and expense? Click here for the top 10 ways hiring a reputable property management company can save you (time and) money.
All in all, hiring a property management company may not be the best move for every landlord, but if it does make sense for you, they will be able to assist you with the balance of being rent ready without eating too much into the bottom line.
If you live in Greater Denver area, contact TJC Real Estate and Management Services for a complimentary consultation. We are unique in the industry as we are a one stop shop for real estate investors. TJC can help with the acquisition, property management, and asset management. Our goal is to create a long-term relationship that helps your asset(s) grow, as well as, provides stable, long-term ROI. We are happy to assist you on your journey to become a real estate entrepreneur and hands off landlord!
Schedule an appointment today to discuss your property management questions!
Brought to you by Sondra Lockett-Cameron, Marketing Manager for TJC Real Estate and Management Services.
TJC Real Estate & Management Services • 303.324.6988 • email@example.com
Your Neighborhood Realtors® Since 2005