How Should You Mange Your Rental Property?
In this post, we are going to take a look at a brief overview of the ongoing management of your rental property.
When it comes to managing a rental property, there are two schools of thought.
There is one group of people who believe that it is a fairly easy task to manage a rental property, and choose to self-manage their property to avoid paying fees of between 6% and 10% of rental income to a property manager.
The second group believe that appointing a property manager frees up their time and allows the rental property to become a truly passive investment.
By having a property manager as a liaison between the owner and the tenant, it allows the landlord to avoid the inconvenience of issues like:
- Locating, selecting and managing tenants
- Collecting rental payments
- Following up on late/missing payments
- Dealing with requests for repairs/maintenance, especially calls for emergency repairs that can come at inconvenient times
- Performing regular inspections of the property to ensure that the tenants are looking after the property
- Appointing a property manager will also help with getting a landlord insurance policy. There are some insurers who require landlords to have a licensed property manager, and others that will provide a discount if the property is professionally managed.
Another advantage of having a property manager that is often overlooked is the ability for them to act as an independent third party in the tenant/landlord relationship. Due to their somewhat independent status in the relationship, they can act as a mediator when tenants make unrealistic requests for upgrades or requesting maintenance to be performed that is their responsibility.