Approximately 45 million families in the United States live in rental properties.
If you're thinking about getting into real estate investing, that's awesome! You are unlikely to face a consumer shortage, which results in a steady return on investment for you.
However, most potential investors have heard property management rumors that make them hesitant about managing their first property. How do you know if these myths are true or not?
Before you take on the role of a property manager, let us debunk a few of the most frequent property management fallacies!
1. It's Way Too Expensive
The most common worry about property management is financial.
Many people discuss the loss of revenue when thinking about investing. They frequently argue that that is the reason they do not engage a property management.
One possible explanation for their revenue problems is that they do not use a property manager.
The fact is that ignoring property maintenance in order to save money frequently has the opposite impact. Using joint property management may save you money in the long run.
Consider a property manager to be someone whose major purpose is to preserve your investment and assist you in maximizing earnings. They will be successful if you are successful.
2. Screening Tenants Will Be Too Difficult
This myth should be instantly dismissed as a massive misconception.
Consider your present screening procedure. Have you considered everything tenant screening requires if you're new to the game?
Are you acquainted with Fair Housing policies and rules? It's part of the duties of your property management.
Screening entails making several phone calls to confirm:
- Rental income history
- Work experience
- You will also be charged for credit and criminal background checks
A property management business specializes in screening and has the necessary tools. They want good tenants just as much as you do since bad tenants waste their time and money.
3. It's Too Time Consuming
This misconception is somewhat true—property managers do not work in their offices throughout the clock. That doesn't imply their obligation to you ceases at 5:00 p.m.
You're worried about their working hours since nothing spectacular happens during the day, right?
If one of the reasons you engage a property management is to save time by having someone else handle maintenance and repairs, who is looking after your property after hours?
Of course, your property management business! Property managers are similar to many other types of service providers. Tenants can call an emergency hotline if their furnaces or plumbing break down.
4. I Will Have to Do Everything Myself
The belief that a property owner can do it all is related to the fear of losing too much money.
You can handle the majority of the routine responsibilities associated with property ownership. But do you really want to?
First and foremost, managing a property is a full-time occupation. Let's break it down and look at some of the things you'll be accountable for, such as:
- Tenant screening
- Preventative maintenance
- Tenant problems
In the end, your renters pay rent in exchange for a well-maintained home. Hiring a specialist guarantees that renters receive what they pay for. It also allows you to devote more time to other hobbies.
Debunk These Property Management Myths
Of course, managing a property for the first time is a challenge to some. However, it's not nearly as daunting as these property management myths make it out to be! Now that you've read this property management guide, you are ready to get started.
Are you ready to invest in a rental property? For more property owner resources, click here.