Are Property Managers Worth It? Let’s Take a Look!

Real estate investing is one of the most reliable and lucrative options out there. The rental property market has remained a solid option for many who want the benefit of both long-term appreciation as well as ongoing cash flow. That being said, managing property can be a tricky business. It can be tiring and stressful. That’s why many people turn to property managers as an opportunity to invest while not being bogged down with everyday headaches. The question is: are property managers worth it?

We manage every part of the homeowning journey, so we understand all the different pieces of the puzzle. From being the tenant screeners for rentals in Boston to Philadelphia apartment marketers to Baltimore hard money lenders, there is hardly a role we haven’t played in providing support to the rental market in the cities we service. Being a property manager encompasses so much. That means it can also be confusing to those who don’t do it. Let’s break down some of the basics here.

• Are Property Managers Worth It?
• Pros and Cons of Hiring a Property Manager
• If the Answer is Yes, Consider BMG!

Are Property Managers Worth It?

Every rental investor’s journey is different. That should always be respected. When considering whether a property manager should be part of how you grow your investments, it is helpful to see it as any other part of investing. It is full of costs and savings that need to be factored in. Answering the question are property managers worth it results in all sorts of factors that need to be taken into account.

Hiring a property manager is hiring a service. Similar to hiring people to clean your home or wash your car, there is always a question of how much you want to do yourself and how much you should be doing. If you hire the professionals to do it, yes, you are paying someone… there is cash going out of your pocket. However, the act of hiring a professional to do it results in an inherent improvement in quality. And of course, the expected lessening of stress and worry that it is something you have to worry about from one day to the next.

It is a personal question based on your own constraints in money, time, and expertise. Property management companies exist because many people find it very beneficial in many cases. What we can do here is outline some of the pros and cons and see how much they reflect or inform your own situation.

Pros and Cons of Hiring a Property Manager

Outlining the benefits and drawbacks of hiring a property manager is an efficient way to think about the dilemma. So here we go over a lot of broad pros and cons of this decision.

Pro: Time and Energy

If you’re someone who already has a full-time job, you already have a lot going on. While you are looking for a source of passive income in the rental property game, whether you have the time and energy to devote a lot of time to it could be questionable. Managers can handle every aspect of managing a rental property, which frees up your time. They give you more time for yourself – whatever that means to you – and they shield you from direct responsibility for tenants in all sorts of ways.

Pro: Experience

Have you ever been a property manager? You might want to investigate the responsibilities of a property manager and what makes them important, especially in the case of a number of properties. A property manager likely has years of experience managing rental property; they know the ins and outs of the market, how to price market properties effectively, and are often able to shorten the vacancy periods of the rentals they manage. They know how to screen tenants, deal with tenant disputes, lease breaks, evictions, and so much more. These are all parts of being a property manager that can be overwhelming for an ordinary landlord. When you hire a property manager, you are hiring expertise that is hard to duplicate.

Pro: Tenant Retention

Some people think that once a tenant signs a lease for a property, the hard part is over. But that tenant isn’t going to stay forever. At some point, you will have to find a new one. Property managers are skilled at preparing the home for rent and doing it efficiently and in a timely manner. They are used to tenants coming in and out and will be prepared to start marketing the unit as soon as the old tenant vacates. They are also good at retaining tenants. Working with a property management service is part of an overall strategy of keeping units full and tenants happy so that turnover is handled efficiently, while at the same time lowering the turnover rate overall.

Pro: Vendor List

With an investment property, you’re going to work with contractors and vendors. Electricians, plumbers, handymen, cleaning professionals… they will all be needed at a certain point. A property manager typically has a well-established network of pros that they can call on. Sometimes rental property managers even have exclusive contracts with these vendors. So it becomes a huge benefit to have those things taken care of and a system in place when they are needed.

Con: Loss of Control

If you prefer to maintain complete control over every aspect of your property business, hiring a property manager might not be the best choice. By entrusting your rental business to someone else, you relinquish control over operations… maybe you don’t want that. A property management company will employ its own staff, screen and approve tenants independently, and may even make minor changes to the property during maintenance or upgrades without your direct involvement.

Con: Expense

For budget-conscious property owners, hiring a property manager might seem like an unnecessary expense. The primary concern for many is the cost. Property management is a paid service, and the initial fees can be off-putting for those who believe they can manage on their own.  Also, some companies base their charges on factors such as the size, condition, type, and location of the rental property.

If the Answer is Yes, Consider BMG!

Every decision an owner makes (especially in the case of rental property) has the potential to cost or save money. Hiring an experienced professional team to handle the responsibilities of a property manager costs money, but the benefits can outweigh the capital investment… by a lot.

At Bay Property Management Group and Maryland Hard Money Lenders, our focus is on rental management and the lending process involved with it. Whether you’re interested in hiring a property management service in Washington D.C. or hard money lenders in Baltimore, we can help. Our team of managers, lending professionals, leasing agents, accounting staff, and maintenance techs is on hand to ensure no detail of your rental business is overlooked. So, if you are new to the industry or realize self-managing may not be the best choice for you, get in touch with us today.