032- 5 reasons why you need a property manager

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Most people know that I spend my days as a property manager. There are things I love and things I hate about the job, but that's another conversation for another day. I've come to the conclusion that 99% of landlords fall into two categories... they think property managers aren't worth the cost OR they wouldn't want to own rentals without one. My husband and I have always been in the latter category. We've owned rentals for over 20 years and have always had a property manager. It is, in my opinion, 100% worth it... especially in the state of California. There is no other state in the US that makes it harder to be a landlord. {More than once, especially lately, I've advised people I know against becoming a landlord in California.}

Investing in real estate can be lucrative, providing a steady source of income and long-term financial security. However, being a successful rental property owner involves more than just purchasing properties and collecting rents; it requires efficient management to ensure your investments thrive. This is where a property manager comes into play. I am going to share 5 reasons why rental property owners should consider hiring a property manager.

#1 - Expertise and legal compliance : property managers are educated, experienced professionals who specialize in managing real estate properties. They are well-versed in local and national property laws, regulations, and market trends. Their expertise and experience can save you from costly legal troubles and help ensure that your property remains in compliance with all relevant laws. Property managers have to do regular continuing education, required by law. And the good ones stay up on all the changing laws and everything that might affect your property.

#2 - Tenant screening process : finding reliable tenants is crucial for the success of your real estate investments. Property managers conduct thorough income verification, credit evaluations, and rental history verifications to ensure tenants will pay rent on time and take good care of your property. This reduces the risk of problematic tenants and costly eviction procedures. Property managers also know the laws when it comes to tenant screening. Things change regularly. I've come across some private landlords that think because it's their property they can do things the way they want. Unfortunately, this isn't true. That kind of attitude is just asking for legal trouble.

#3 - Buffer between owner and tenant: this professional distance can lead to better tenant-landlord relationships, as emotional attachments and conflicts are minimized. Most private landlords eventually have a bad experience renting to a friend or family member. Without the involvement of a property manager, this can be a potentially disastrous situation. The property manager can handle rent collection including the uncomfortable situation of asking for the rent when it's not paid on time; maintenance and repair request phone calls; complaints about neighbors, etc. I don't ever want a tenant to have my personal phone number-- I want all issues and complaints to go to the property management company.

#4 - Time savings and stress reduction: Managing rental properties can be a time-consuming and stressful process, especially if you have multiple properties or other responsibilities. Hiring a property manager frees up your time, allowing you to focus on other more enjoyable aspects of your life and investments while knowing your properties are in capable hands. You can coach your kid's soccer team; you can travel with your spouse; you can enjoy your weekend without having to go mow the yard at the rental. I am all about reducing stress in my life, even if it costs a little bit.

#5 - Detailed financial reporting: Property managers provide financial reports, outlining income and expenses related to your properties. Most companies offer an owner portal where an owner can login to see the financial activity for their rental. This transparency helps you track the financial performance of your investments and simplifies tax reporting. You should receive a year-end report and a 1099 which makes it easy for your tax preparer.

In the world of real estate investing, hiring a property manager can be a game-changer. They bring expertise, efficiency, and peace of mind to property owners, allowing you to enjoy the benefits of your investments without the hassles of day-to-day management. Whether you're a seasoned investor or just starting out, a property manager can help you achieve your financial goals and protect your real estate assets.