4 Ways It’ll Cost You if You Don’t Hire a Property Manager

Owning an upscale property isn’t merely about investing in comfort and prestige, although that’s a part of it. There’s also the value appreciation potential that comes with buying luxury real estate in a community with a favorable supply-and-demand dynamic. But a property is going to take care of itself -- and it’ll take a lot more effort to do maintenance and repairs on a high-end property versus a more modest home. That’s one reason to consider hiring a property management firm. When you hire the right service provider, you won’t have to shoulder all the landlord responsibilities independently. From screening tenants to collecting rent and from maintaining the property to filling vacancies, property managers are worth the money. If you’re spending a small fortune -- or maybe a large one -- to purchase a home, you might as well invest a little more to ensure the property and tenants are cared for. You won’t have to burn both ends of the candle if a property manager is in your corner. Here are four expensive mistakes you might make by refusing to hire a property manager -- and how the right service provider can help avoid these issues. 1. Missed Maintenance Can Lead to Expensive Repairs Luxury homes require regular maintenance if they’re to continue growing in value. Whether it’s an apartment penthouse, a waterfront villa, or a large mansion, the goal is to ensure that maintenance doesn’t fall between the cracks.  If there’s no system in place to manage regular inspections, preventive maintenance, and timely repairs, neglect can snowball into problems that drain your bank account. That’ll hit you in the wallet if tenants decide it’s not worth renewing their leases. A property manager will stay on top of all of the above issues so that you don’t have to. Your property won’t depreciate because of a lack of proper care.  2. Poor Tenant Screening Can Devalue Your Property A good tenant for a high-end property doesn’t just have the ability to afford the rent. Plenty of people with the means to pay rent either pay late or don’t pay at all. You need to find renters who, in addition to having sufficient income, have personal integrity. Hiring a property manager means getting help with tenant screening. All it takes to turn your dream of owning a rental property into a disaster is a single tenant who damages your property, harasses other tenants, or acts like paying rent is optional. So, you should consider a property manager as a must-have rather than a nice-to-have. You can count on the one you hire to run credit checks, seek landlord references, verify employment history, conduct background checks, and more. 3. Inconsistent Marketing Leads to Vacancy Loss You’ve likely heard before that it’s cheaper to retain current customers than it is to find new ones -- it’s the same way with tenants. You won’t make money from vacant rental units, and it can take months to find replacements if the current ones go elsewhere. With a property manager, you’ll have the landlord presence needed to keep current tenants happy. That way, they’ll be less likely to leave at the end of their leases. But when tenants do vacate and go elsewhere, you need to fill those vacancies asap. A property manager will market your units to find tenants sooner rather than later. 4. Your Time and Energy Can Be Spent Better Elsewhere  If you own an upscale property and have to do everything yourself, you might start to feel like you don’t have time for anything else. It’s hard to achieve a good work-life balance if you’re always on the go and don’t delegate, when doing so is a good idea. One source says the median size of a home in the U.S. is 1,792 square feet. But a luxury home may have a lot more than that median tally -- which means doing maintenance and repairs independently could become a never-ending full-time job.   Hiring a property manager to provide landlord duties can ensure you still have a life. You won’t have to get on the phone at 3 A.M. to deal with a tenant complaining about something. And you won’t have to source materials and hire contractors for repairs. If you own a luxury property or are thinking of doing so, these are four reasons why it’s a good idea to retain a property management firm. Failing to do so might save you money, usually a percentage of the monthly rent, but it might cost you more in the end. Shrewd rental property owners understand the importance of getting help, and that’ll be even more important if the goal is to build a portfolio of investment real estate. A good property management firm is an investment that you can’t afford to undervalue. The goal is to spend the time needed to find the right service provider for your needs.