Purchasing an investment property is an exciting time. Owning real estate can provide you with a source of passive income and diversify your assets. However, many property owners lack the time, skill, and availability to manage an income property—or multiple properties—themselves.
Working with a property manager has many benefits, but is it the right choice for you? If you’re looking to purchase your next (or first) investment property in 2023, here are a few things to consider when it comes to working with a property management company.
The Benefits of Working With a Property Manager
A property manager can benefit you whether this is your first investment property or your fifth. Many investors choose to work with property managers because they have multiple properties in different locations, which would be unrealistic for them to manage themselves.
Property managers have the necessary skills and experience to help your investment run smoothly, including but not limited to: screening tenants, conducting regular maintenance, hiring contractors for emergency maintenance, and handling rent collection and documentation.
One of the best things about working with a property manager is that you can customize services to include those you need, such as rent collection and maintenance, but perhaps not tenant screening or approval.
Working with a property manager is ideal for people who:
- Have multiple income properties or multi-family buildings
- Live or work out of the state or town the property is in
- Don’t want to be on-call 24/7
- Are unfamiliar with landlord-tenant laws
- Want less stress with their investment
Considering a property manager is a must for those who want to maximize the value of their investment without sacrificing their time to do so.
When to Consider Managing an Income Property Yourself
There are a few instances where it may be worth managing your investment property yourself.
For example, if you’re looking to purchase a property in an area where you live or work, it may be convenient to manage your income property if you have the necessary time and skills to do so. This option makes sense for retired individuals or those who may only work part-time or don’t have another job or minimal time commitments outside of their investments.
When considering this option, it’s essential to weigh the pros and cons. If you’re a new property owner and unfamiliar with local landlord-tenant laws or have never managed an income property before, it may be more profitable to hire a firm to take over some or all of these tasks for you.
Interviewing property management firms and understanding all your options as an investment property owner can help you make the decision that’s best for you.
Let’s Find Your Best Solution Together
FAS Management works with property owners in DC and Maryland to help them turn their investment properties into profitable, long-term investments with minimal stress. Contact our firm today at (202) 337-5080 to discuss your options, and let’s find your best solution together.
