There is a lot of misinformation when it comes to property management. Here are top property management myths, debunked.
In the United States, approximately 45 million households live in a rental property.
Good news if you’re considering breaking into real estate investment. You likely won’t suffer from lack of customers.
But are you prepared to manage those tenants and the properties they’ll occupy?
Most investors understand rental properties don’t manage themselves. They know hiring a property management company is an option. but they hesitate. They’ve heard too many rumors.
Don’t let a bunch of vague myths prevent you from taking advantage of a much-needed service.
Before you take on the job of manager for your properties, let us debunk 7 of the most common property management myths.
1. I Can’t Afford It
The number one fear and one of the biggest property management myths is financial.
Investment property owners talk among themselves about everything. A common thread is the loss of revenue. They often claim it’s the reason they don’t hire a property manager.
Chances are not using a property manager is one explanation for their revenue woes.
The truth is avoiding property management to save money often has the opposite effect. Using partnered property management may save you money over the long-term.
Think of a property manager as someone whose primary goal is protecting your investment and helping you maximize revenue. If you’re successful, they’re successful.
2. I Can Do It Myself
Related to the fear of losing too much from the bottom line is the idea that a property owner can do it all. If you do everything you’ll save money, that’s not rocket science.
You can take care of most of the normal tasks that come along with property ownership. But do you want to?
First, managing a property (or properties) is a full-time job. Let’s break it down and look at a few tasks you be responsible for including:
- Routine maintenance
- Tenant issues
Do you have time for even a fraction of the items on this list?
The bottom line is your tenants pay rent in exchange for a well-run property. Hiring a professional ensures tenants get what they pay for. It also frees up your time for other activities.
3. I’m Already a Maintenance Specialist
Myth #3 is nothing but a justification for holding on to #2. If you’re currently taking care of everything, including maintenance, you’ve provided the proof you can do it all.
Or, maybe this is your first property and you assume since you do the repairs on your primary residence, you can do it for your investment properties.
Skilled handymen (and handywomen) save themselves time and money. They also have the luxury, depending on the repair, to make repairs on their own schedule or wait until the next payday.
Try telling a tenant they must wait for the repair on a drippy faucet, especially if they pay the water bill.
If you’re new to rental property ownership, you haven’t yet experienced a huge HVAC or plumbing issue. You likely haven’t dealt with a tenant who needs a major repair done now.
Another angle to consider is time. What’s your time worth? In most cases, it makes more sense financially to hire a professional to manage maintenance and repair.
4. No One Loves My Property Like I Do
Funny how so many property management myths are closely tied together. This one is directly related to Myth #3.
Certainly you care for your property, after all, you’ve invested a significant chunk of time and money. It’s one reason so many investors try to be the jack-of-all-trades. They figure they’re the only one who cares enough to do the job right.
It’s not uncommon to think no one else could possibly care as much about your investment as you do, but it’s not true.
Property managers are in the business of caring for and about their client’s investments. As we mentioned earlier, your success effects theirs. It also impacts their professional reputation.
5. They Can’t Screen Tenants Like I Can
This myth is one you should quickly write-off as one big fallacy.
Think about your current screening method. If you’re new to the game, have you thought about everything tenant screening entails?
Are you familiar with Fair Housing rules and regulations? It’s part of your property manager’s job.
Screening means making multiple phone calls to verify:
- Rental history
- Work history
You also pay for credit and criminal background checks.
A property management company specializes in screening and they have the tools to do it efficiently. They want excellent tenants as much as you do because bad tenants cost them time and money too.
6. I Will Lose My Service Relationships
One of the benefits of partnering with a property management company is also the root of this myth.
When you work with a property manager you benefit from their extensive network of service providers and vendors. They’ve spent years cultivating relationships with a wide range of providers, which means they often have a repair person or vendor on-call.
The myth is that if you hire the company, you also hire their network. The truth is although a management company may prefer using certain people or companies, they don’t force them on their clients.
If you already have providers you trust, continue using them. If something happens and a relationship doesn’t work out, you can always circle back and ask your property manager for a referral.
7. They Work 9 to 5
This myth is partially true—property managers don’t sit in their office 24/7. However, that doesn’t mean their responsibility to you ends at 5:00 p.m.
The reason you’re concerned about their working hours is that nothing exciting ever happens during the day, right? Things like plumbing emergencies happen after midnight when normal people sleep.
If one of the reasons you hire a property manager is to save time and have someone else worry about maintenance and repairs, who’s watching out for your property after hours?
Your property management company, of course! Property managers are like many other service providers. They have an emergency number tenants for things like furnaces going out or plumbing problems.
Have We Debunked Your Property Management Myths?
Considering the value of real estate investments, it’s not surprising when property owners question whether they should pay for property management service. Hearing myths about what property managers do and don’t do often adds confusion.
Hopefully, we’ve addressed your questions and debunked the most common property management myths.
If you’re ready to take the next step in managing your property, contact us and we’ll set up an appointment. Our mission is taking care of your property as if it were our own.