As an experienced investor in multi-unit properties for over 40 years, this is a question I often hear from new and experienced investors. There is no absolute answer, so I will cover some of the areas that a property manager would be concerned with, Ultimately, however, you must decide if this is the best way to protect your investment.
SOME EASY ANSWERS
If you don’t have the time or you live too far from your property, the answer is simple. You need a professional to take care of your investment property as you are unable to do so. Then you must look into finding the best available property manager in the area where your property is located.
DUTIES
Everything is negotiable, so when you decide on a manager, you need to decide which duties your manager will perform on your behalf. Generally speaking, these will be:
1) Setting rental amounts and collecting rent
2) Handling maintenance requests
3) Filling vacancies and setting a budget.
Management companies will also provide you with a monthly profit and loss statement for your building which will make your tax preparation easier. They may also notify you about
new laws and regulations you may not have been aware of.
There is a lot of room for you to decide here. You set the rent. How often to raise? Will there be quarterly or semi-annual inspections? How will vacancies be made rent-ready and advertised? and What type of property management /record-keeping computer application will you use?
DO IT YOURSELF
If you have the time and the property or properties are close enough, you may decide to take this on yourself. As an owner, you will be there more often, being able to spot problems before they grow, find new vendors for repairs, and use your own bookkeeping methods. I have always managed my own properties, with the exception of a 10-unit I once owned in Las Vegas, and I have always preferred the hands-on approach.
EXPERIMENT
You may try one or even more than one company before you find the manager that does things the way you would prefer. You may also decide, after doing your own management, that you would prefer to have a professional manager. You should also consider speaking with your local apartment owners association for recommendations.
What we at PRS PROPERTIES CAN DO. We can discuss with you the current rents in your area and supply you with comparable rental prices for similar properties. Before you hire a manager, make sure the compensation is fair to you! We can also look at your building for changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.
We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium, or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45-day identification period runs out.
Should you decide to put your property on the market, we will put together an aggressive, targeted, and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.
Remember – KNOWLEDGE IS POWER!
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