Investors looking to cut expense are cutting property managers from their payroll.But that could be false economy, reports Jemima Codrington.
Video transcript below:
Jemima Codrington: In a recent poll the majority of Crew readers didn’t seem in favour of having a property manager. But are you doing yourself a favour or missing out on a valuable resource. We get to the bottom of the perks of property management in this week’s Investor Insight.
Some experts believe that deciding when to hire a property manager shouldn’t depend on how many properties you acquired, but on how many responsibilities you incur.
Tarik Gidamy, The RedPin.com
Tarik Gidamy: I think it’s very based on the owner themselves. If they are managing a single property and it’s easy to do such as a condo, they probably don’t need a property manager, but once you start to get into more of the multi residential stuff where you are collecting rent, making sure the properties are upkept, making sure that the place is fire retrofitted and upto code and certain things that really take a lot of time consumption and in terms of paying, you know you are paying 7 to 10% of your rent, your gross rent, to have a property manager so it’s quite affordable as well.
Jason McGuire, Real Property Management Service
Jason McGuire: We find that people decide they need a property manager in different stages of all their lives. It depends on if you are an investor, if you failing to rent a property or how you are really trying to grow your portfolio. So I’d like to say that it’s one shoe that fits all, but it’s really kind of individually customised. People with large portfolios need that back up there to take care of the properties and of the day to day issues and smaller people just really don’t know what they are getting into, they still want that professional level of support.
Jemima Codrington: Many investors may not realise the full extent of the services offered by property management, but could surely benefit from them.
Jason McGuire: Property managers offer a variety of service to clients and typically we are looking for somebody who can handle everything dealing with their rental property. So you’ve got your advertising, your tenant screening, your rent collection, maintenance issues, property inspections and even evictions are essential to make sure that each property manager covers for you. And if you find somebody who offers you all this, you’ve got all your bases covered and you are able to make sure your investments are properly looked after.