1. How far do you live from your rental property and how frequently can you visit the property on a regular basis?
The further you live from your property the more you have to spend on travel time to make regular visits required for maintenance, inspections, collections, etc., Consider if it is realistic for you to be going back and forth if you are not close to your rental property.
2. How do you deal with stress? Do you consider yourself to be a tolerant person?
The ups and downs of property management comes with a lot of stress and it’s not made for everyone. Property management comes with unpredictable problems that not everyone can handle.
3. Are you currently overwhelmed with your property(s)?
Managing rental properties can become quickly overwhelming, even for the most experienced investors. There is always something going on that requires attention not only in your rental properties but in life as well. Hiring a property manager can help regain control and stability.
4. How many rental properties or units do you have?
With a larger number of rental properties comes a larger number of management challenges. Investors with large portfolios can benefit by taking advantage of the efficiencies that a property manager can provide. Size can also constrain investors' ability to consider purchasing new properties if they're already maxed out managing their current holdings.
5. How much experience do you have with maintenance and repairs?
A property management company has the connections to maintenance and repair and can hire the people they know are ethical, insured, and and do quality work.
6. How quickly are you able to get your unit rented?
Advertising, fielding calls, and showing your unit takes a lot of time that a property manager can take off your hands.
7. Are you capable of handling the accounting and record keeping for your property?
A property management company can help with financial aspects from profit and loss statements to tax deductions. This can be a large burden on owners, especially those with larger portfolios.
8. Are you willing to be on call 24/7/365?
When there is an emergency at your property, it cannot be ignored, no matter where you are and what you might be doing. This might mean being called in at 2am or during a special event. Property managers can take this burden off your shoulders.
9. Are you willing to confront tenants about late payments and if need be evict them from the property?
Hiring a property manager for this task can keep the owner from feeling like the bad guy. Let the property manager do the hard confrontations like dealing with late payments
10. How well do you understand the laws governing land lording?
It is important to be familiar with contracts and to run the property in accordance with the law to prevent lawsuits and liabilities.
11. From a financial standpoint, is managing your property the best use of your time?
Ultimately, your decision to hire or not hire a management company should hinge on whether or not it is a good fit with your lifestyle and makes sense financially. Individual investors will have to assess the opportunity cost of both options based on their unique circumstances