Should I Hire a Professional Property Manager?
apartments.com/Megan Bullock • February 8, 2021
It’s true what you’ve heard — property managers can be an immense help for small-asset landlords like yourself. It’s also true that property managers are a luxury that not all landlords can afford. So before you decide if you can afford one (and need one), let’s dive into what a property manager actually is and what they can do for you.
What Is a Property Manager?
The name is pretty self-explanatory here — a property manager manages property. But what do they do on the day-to-day? A property manager is an employee hired by a landlord to manage the everyday work that goes into a rental property. A property manager:
- Sets the rent for the rental property
- Collects rent from tenants
- Adjusts rent according to competition and market value
- Advertises property to find tenants
- Screens tenants
- Deals with the leasing process
- Handles complaints and emergencies from tenants
- Deals with move-ins and move-outs
- Handles evictions (if it comes to that)
- Schedules maintenance and repairs to the rental property
- Deals with finance and budget aspects
- Keeps things organized and running smoothly
Seems like a lot of responsibilities, doesn’t it? If you’re a landlord, then you’re balancing all of these responsibilities on your own. If things are starting to get hectic, you may want to consider hiring a property manager. Not sure what you want in a property manager? A few qualities will make one stand out from the rest.
Qualities of a Property Manager to Look For:
The most important aspect to consider when hiring a property manager is their attitude. You want someone who is dedicated to keeping the line of communication open, while being able to maintain the property without contacting you frequently with questions and concerns. Their main purpose is to assure you that your investment is being properly taken care of – not only your investment in the property, but your investment in the property manager.
You May Want to Hire a Property Manager If:
- You have too many properties to manage alone. Many landlords can only handle a few properties at a time – so if you’re managing five to ten (or more) properties on your own, you may want to consider gaining the assistance and expertise of a professional property manager. You’ll have peace of mind knowing that your properties and tenants are in good hands.
- You live far from your properties. Do you live more than an hour from your properties? If so, it may be in your best interest to speak with a local property manager who has quick and easy access to the area your rental property is located in. If you’re a long-distance landlord, then you will need to have contacts within the area of your rental property for any maintenance issues or emergencies that arise with the property or tenant. Make it easier on yourself by hiring a local property manager!
- You’re not very familiar with the business. If you don’t enjoy keeping track of every detail of a business, or if you don’t feel secure enough in your knowledge of managing rental properties, then property management probably doesn’t suit you. But that doesn’t mean you can’t own the property – simply hire a property manager who can help you with the parts of the job you prefer not to do (or aren’t comfortable doing), such as marketing the property, screening tenants, collecting rent, dealing with maintenance, etc.
- You’re too busy. Perhaps being a landlord isn’t your full-time job – if you have another career, then you may be too busy to be both the owner and manager of your rental property. Lessen your stress by hiring a professional property manager who can help you keep things in order.
- You have the funds to hire a property manager. There are some properties that you probably don’t need (or can’t afford) to hire a property manager for. But if you feel that you have a surplus of funds to do so without going underwater, then it’s probably a good idea to hire a professional. You’ll feel a weight lifted off of your shoulders knowing that your rental property is being managed efficiently. Property managers or property management companies can charge various amounts for their services. You can expect to pay between 8-12% of the monthly rental value of the property, or you may be charged a flat monthly rate depending on the value of the property.
- You’re struggling to fill your vacant units. We can’t all be marketing pros – and that’s okay! If you’re having trouble filling your units, and you find that they are often vacant despite your efforts, then you’ll likely benefit from the marketing techniques of a professional property manager. They can help you advertise your property and get more tenants interested in and applying to rent your unit.
- If you're still wondering if you should hire a property manager, remember that the most important factor to consider here is budget. If you feel that a property manager would keep you from getting a positive return on your investment (your rental property), then it may be best to continue to do the work yourself. But if you have the funds, and you lack time (amongst other things), then consider relying on the support of a property manager — the choice is yours!
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The 10 Best Markets for First-Time Buyers This Spring For a while, buying your first home hasn’t just felt hard. It may have felt out of reach. Not because you weren’t ready . Not because you weren’t trying . But because every time you ran the numbers, they didn’t work . That’s why so many first-time buyers stepped back. But after years of sitting on the outside looking in, this Spring could give buyers like you an opening again – especially in some markets. Metros Where Buyers May Have an Easier Time Breaking into the Market Zillow just released a list of the top 50 metros for first-time buyers this Spring. And here’s a quick snapshot of the top 10 (see chart below): According to Zillow, in these top-ranked markets, median-income households can afford 68% of all homes for sale . Let that sink in. Not long ago, it felt like you could barely afford anything. Now, you may actually have some options again. That doesn’t mean every home is suddenly going to fit your budget. But it does mean the door that felt closed for so many buyers is starting to crack back open. And in a number of cities, first-time buyers may finally be getting a shot at buying . Why This Is Starting To Open Up These cities are rising to the top not because of any one big change, but from a few smaller ones finally lining up. As Orphe Divounguy, Senior Economist at Zillow, explains: “ First-time buyers are finally seeing some light at the end of the tunnel. Affordability is still a challenge, but rising incomes, stabilizing prices and improving inventory are creating real opportunities in parts of the country. In the strongest markets for first-time buyers, they'll find more choices, less competition and a clearer path to homeownership than they've had in years .” Basically, three big things are working in your favor: More homes are hitting the market. Realtor.com says inventory is up 8.1% compared to last year. That gives you more choices, less pressure, and more chances to find a place that fits your budget. Price growth is moderating, so homes aren’t moving further out of reach as quickly. Some may even be falling back within your target price point. Incomes are rising. If you make more money, that can offset some of the affordability challenges too. And even though mortgage rates have been higher lately, that combination can still make a difference. As Mark Fleming, Chief Economist at First American , explains : “Income growth has outpaced house price growth for 19 straight months, boosting house-buying power even as mortgage rates remain elevated.” How To Find the Opportunities in Your Local Market But what if your city didn’t make the top 10 list, or even the top 50 markets? Here’s what you really need to remember. There’s going to be opportunities in every market, if you know where to look. Even in the same city, two buyers can have completely different experiences. And a big part of that is who they choose as their partner. The right agent knows how to find pockets of opportunity in any market. That could mean: A neighborhood where prices haven’t climbed as quickly A part of town with more inventory, or A new build community offering incentives so builders can sell their inventory So, even if your city didn’t make the list, that’s okay. There’s still an opening for you, you just need your agent to help you find it. Bottom Line For a long time, first-time buyers have felt stuck, waiting for their turn to buy. But for some buyers, this Spring might be the first time in a while where things start to feel more within reach again. Want to see which neighborhoods could give you the best shot at buying right now? Let’s talk.
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3 Must-Do’s for First-Time Home Buyers Buying your first home is exciting, but it can also be a little nerve-wrecking because it’s something you’ve never done before. And trying to think of everything you need to do can feel like a lot. But here’s the key. You don’t have to figure everything out on your own. And you don’t have to do it all at once. Just tackle it one thing at a time. Here’s a simple list of 3 main things you should focus on to help you get started. 1. Assemble Your Team: Don’t Do This Alone Buying a home is a team sport. And having the right professionals by your side can make a world of difference. Here’s who you need to find: A local real estate agent is your guide from the first showing to closing day. They’ll make sure you understand all the details along the way, so you feel confident in your decision. A trusted lender will walk you through loan options, monthly payments, and what’s realistic for your situation. That information is something you’re going to want early on. 2. Prep Your Finances: Set the Foundation First This is what determines what you can afford, how competitive you’ll be, and how confident you’ll feel when it’s time to make an offer. Here’s how to get ready: Check your credit score. Your credit score impacts the loan options you’ll qualify for and even the mortgage rate you’ll get. Knowing this number early gives you time to work on raising your score, if you want to. Save for your down payment and closing costs. Most buyers focus on the down payment , but closing costs matter too. Having savings set aside for both helps you avoid last-minute stress and surprises. Look into assistance programs. Many first-time buyers qualify for programs that’ll give their homebuying savings a boost. This can make buying possible sooner than you expect. Talk to a lender about mortgage options. Fixed-rate, adjustable-rate, FHA, VA , and conventional loans all work differently. Understanding the options helps you choose what fits your goals best. Get pre-approved. A pre-approval tells you what a lender would be willing to give you for your home loan. This’ll help you figure out your price range and set you up to move fast when the right home comes along. Figure out your budget. Your mortgage is just one part of homeownership. Budgeting for your utilities, home insurance , and everyday expenses and maintenance will help make sure your payment feels comfortable, not stressful. 3. Gather Your Documents: Save Time (and Stress) When you’re officially ready to kick off the buying process, lenders are going to need to verify your income, assets, and financial history. Having these documents ready-to-go upfront can speed up the process and reduce back-and-forth. Here’s what Bankrate says you need to prep: W-2s and tax documents (past 2 years). These show income stability and help lenders verify your earnings over time. Recent pay stubs (generally the past 1–2 months). Pay stubs confirm your current income and employment status. Bank statements (past 2–3 months). These show your savings, spending patterns, and where your down payment funds are coming from. Investment account statements (past 2-3 months). If you’re using investments as part of your financial picture, lenders may ask for these as well. Copy of your driver’s license. This verifies your identity and is required for loan processing. Residential history (past 2 years). Lenders use this to confirm stability and background information. Statements for any outstanding debts (past 2 months). Student loans, auto loans, and credit cards affect your debt-to-income ratio, so lenders will want to know about them. Proof of supplemental income. Bonuses, commissions, side work, or child support may count toward your income if documented properly. Note: the exact time frames and list of documents may vary lender to lender. This is just a general rule of thumb to help you get the ball rolling. Bottom Line Buying your first home doesn’t mean you have to have everything figured out. It just requires a plan. If you start with your finances, organize your documents, and surround yourself with the right people, you’ll be in great shape when the time comes to make a move. And if you want more information on anything in this list or just need help getting started, don’t hesitate to reach out.
