Take A Break From Being A Landlord To See How Property Management Works In Comparison
Investing in real estate can mean buying fixer-uppers, fixing them, and then selling them for a profit or buying properties and turning them into rentals. If you decided on owning and managing rentals several years ago and you have been taking care of tenants since the first time you listed a vacancy, you may not know what it feels like to not have this responsibility on your shoulders anymore. It is possible that you have done well financially, but it is worthwhile to hire a property manager to take over your duties. Letting someone else do the work will give you a new and valuable perspective on your real estate investment.
Figure Out the Hours Invested
It is helpful to keep track of how many hours you normally invest into being a landlord. These hours will naturally increase when you have a vacancy because you will need to get the place ready for renting again. But, there are other things that take up time such as maintenance and answering questions. You can calculate how much money you make per hour on average by comparing total hours with total profits. A property manager can show you what it is like to enjoy a considerable amount of free time again.
Consider the Additional Costs
When you hire a property manager, you are going to be adding another expense to your real estate investing. But, this expense can lead to more profitable opportunities in the future. For instance, being so busy with managing a few properties will slow down or keep you from looking at other places to buy. A property manager who takes care of management gives you plenty of time to focus on investing. As you get more properties, you will have an easier time haggling for a lower management rate.
Try to Calculate Your Happiness
When you work as a landlord, it makes sense that you have to put your job above your happiness. If an emergency happens, you need to be ready to respond until the situation is resolved. An empty rental is not going to generate any income until you clean it up, make online listings, and interview people. Bringing a property manager on board will help you determine how happy you were as a landlord.
Since being a landlord is not something that you can take a break from without finding a replacement, you can benefit from hiring a property management company for a while to see what it is like without work to do.