Some 61% of voters said they would only hire a property manager after acquiring a minimum of four properties. In contrast, 18% said they’d hire one to manage one property, 13% would hire one at three properties and only 9% of investors said they needed one with two properties in their pocket.
Still, the benefits of property management are many, say some industry veterans. They point to lower vacancy rates, higher quality of tenant and the ability to own property far from home or overseas.
Those points often fail to convince small investors.
“We find that in many cases investment property owners feel that being a landlord involves very little work and it is a cost they can avoid by managing the units themselves,” says Jason McGuire of Real Property Management Service. “The scary truth is that most landlords do not understand what it means to be a landlord in Ontario and have no formal training or experience.”
Between complying with regulations such as the OADA(Accessibility for Ontario with Disabilities Act), OHRC (Ontario Human Rights Commission), RTA (Residential Tenancy Act), LLTB (Land Lord and Tenant Board) as well as juggling things like tenant needs or eviction, investors can easily miss things, says McGuire.
“A property manager has experience with all these aspects and requirements, giving them the ability to smoothly facilitate repairs, rent collection, eviction notices and working with your tenants,” he said. “These procedures derived from experience will normally add up to savings the owner money with quicker turnaround and response times.”
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