Today we are talking about why you, as a landlord, may want to hire a property management company to manage your asset or your property. There are many reasons that you may need help and in this blog, we’re going to discuss the three top reasons.
Data
Statistically, we get 50 to 100 new clients every year who come to us for help managing their property. A large number of them are first time landlords or DIY property managers. They were successful in the first few months or the first year and then a hiccup occurs. Usually that’s when they realize they don’t have the skill or expertise to deal with a particular issue, so they ask a professional property manager for help. It’s great that you’ll ask for help when you need it, but as a business, it’s not a good idea to create cash flow that way. When you start your investment planning with the help of a professional, you’ll get a much larger return on that investment.
Mitigating Risk
Most people aren’t aware of the risk involved in owning rental properties, or they are aware of it but they think that if they don’t talk about it or they don’t see it, then it doesn’t exist. In property management, you have a product that you are leasing to someone else, and a lot of things come into play in that relationship. Those things create a lot of risk. You have to manage the liability legally and professionally. Yes, you can get away with some things here and there, but in the long term it is unlikely that you can get away with anything when it comes to tenants and your property. That’s when landlords often turn to professional managers; when something they are doing does not work.
Knowledge, Skills and Personality
It’s unlikely that you have all the skill sets and personality traits necessary to manage your property well year in and year out. We have dealt with many clients on both ends. We work with tenants and contracts and property owners on a regular basis, and we’ve learned that individuals rarely know everything they need to know to successfully manage a property. It’s a job that is best spread out among a number of individuals. Sometimes, an individual can wing it for a year or two, but statistically we know that too many people come to us after trying to do it year after year on their own.
If you have any questions about what we’ve discussed, please contact us at Phoenix Property Management, and we’d be happy to tell you more.