Property ownership comes with various responsibilities and can consume much time and energy.

From maintenance tasks to tenant management, the duties can quickly become overwhelming, leading many to ponder: is it time for me to get a property manager?

In this detailed article, we'll guide you through the key signals that it's time to consider professional property management.

Understanding the role of a property manager

Before we dive into the signs that indicate the need for a property manager, let's revisit what a property manager does:

• Tenant management includes finding and screening tenants, handling complaints, and dealing with evictions.
• Property care: Regular maintenance, arranging repairs, and performing routine inspections fall within their domain.
• Financial responsibilities: They set, adjust, and collect rent, manage the budget for property repairs and improvements, and maintain financial records.
• Legal issues: A property manager will ensure your property complies with housing laws and regulations.

We have a comprehensive guide to the complete duties of a property manager or property management company and some key insights into this role and industry.

Here are some additional basic resources on property management:

Important property management terms and fees to know

Benefits of working with a property manager

Guide to the different corporate structures of residential property management

How to choose the right property manager for your needs

Understanding the costs and benefits of property management

Hiring a property manager is an investment with costs and benefits. Typical costs include a percentage of the rental income and additional fees for services like tenant placement or eviction. However, these costs are often offset by the numerous benefits:

• Time-saving: A property manager handles tenant placement, rent collection, maintenance, and inspections, freeing up your time.
• Reduced stress: Dealing with difficult tenants, late-night emergencies, and evictions can be stressful. A property manager handles these situations for you.
• Potentially higher occupancy rates: Experienced property managers know how to market your property effectively and maintain good tenant relationships, which can lead to higher occupancy rates.
• Better compliance with laws and regulations: Property managers are familiar with the local, state, and federal laws that govern rental properties, helping you avoid potential legal issues.

Read about the additional benefits of hiring and collaborating with a property manager.

Signs you should consider a property manager

1. Distance from your property: If you live far from your rental property, a property manager can handle day-to-day operations, maintenance, and tenant issues that are challenging to manage remotely. See some of our additional tips for managing remote property. Doorstead offers a unique rent guarantee service, where we pay you a guaranteed monthly rent, regardless of tenant occupancy.

Distance from the property is one of the key reasons why customers use Doorstead’s rent guarantee. Read about some of the other common use cases for our rent guarantee.

2. Multiple rental properties: As your investment portfolio grows, so do management tasks. A property manager can efficiently handle multiple properties, freeing up your time. This reason is another common use case for Doorstead’s rent guarantee.

3. Limited time or interest: If property management becomes a chore or interferes with other activities or obligations, it may be time to hire a professional. Read about some of the other benefits of working with a property manager.

4. Legal complexities: If you're finding it difficult to keep up with housing laws and regulations, a property manager can ensure compliance, reducing your risk of potential legal issues.

5. Tenant turnover issues: High tenant turnover and associated costs can indicate a need for a professional. A good property manager can help find long-term tenants and satisfy them.

6. Financial inefficiency: If you're struggling to set the right rent amount, failing to collect rent promptly, or facing financial losses, a property manager can help you achieve better financial performance.

When not to hire a property manager

While there are many reasons to hire a property manager, it might not be the best decision for everyone. Here's when you might choose not to hire a property manager:

• You live near your rental property and enjoy hands-on management.
• You have ample free time to dedicate to your rental properties; managing this property is your main job.
• You're familiar and experienced with local housing laws and regulations and feel comfortable ensuring compliance.
  

If you decide to self-manage your property, here are some resources you might find helpful:

A complete guide to renting your home

How to prepare your property for future tenants: a comprehensive guide

10 features that tenants expect from rental homes

7 home remodeling projects for boosting your home’s value in 2023

Summary of self-management vs. professional property management

Here's a final comparison of self-management versus hiring a professional in a digestible format:

Self-management:

• Total control over all decisions and operations
• No management fees
• Potential for more intimate knowledge of the property
• Need to handle all tenant communications
• Must stay up-to-date with housing laws and regulations
• Responsibility for marketing and filling vacancies
• Managing maintenance and emergencies personally

Professional property management:

• Management handled by experienced professionals
• More free time as daily tasks are taken care of
• Stress reduction as they handle difficult situations (e.g., evictions)
• Likely better adherence to laws and regulations
• Potentially higher occupancy rates due to expert marketing
• Maintenance and emergencies are handled promptly
• Costs associated with management fees

You can determine which approach is right for your situation by weighing these factors. Whether you choose self-management or professional property management, understanding your needs and commitments is key to successful property investment.

Additional questions about hiring a property manager

How much does a property manager cost?

Typically, property managers charge a percentage of your property's monthly rental rate in exchange for their services.

Doorstead charges 6% for our traditional full-service property management and 8% for our rent guarantee service, where we pay rent monthly regardless of tenant occupancy. Learn more about how Doorstead works and what our customers say about our full-service property management service.

Can I hire a property manager if I only have one property?

No matter how many properties you own, a property manager can be beneficial. You can experience increased returns to scale if you own multiple properties by working with a property manager.

What should I look for in a property manager?

When choosing a property manager, factors such as experience, services offered, fees, reputation, and knowledge of the local rental market should be considered.

They must also offer the specific services you need and have experience managing properties in your local market.

Here is a guide to help you select the best property manager for your property and needs and some questions to ask a potential property manager.

How Doorstead can help

Doorstead offers comprehensive property management services that can be tailored to your needs. From setting the optimal rental price and handling all tenant interactions to managing maintenance issues and ensuring legal compliance, Doorstead is designed to give you peace of mind and maximize your property's profitability.

Read about how Doorstead helped two busy first-time homeowners transition into profitable landlords with our rent guarantee service.

So, when should you get a property manager?

If managing your property or thinking about all the decisions and steps involved is consuming too much of your time, causing stress, or not delivering the financial returns you'd hoped for, it may be time to consider hiring a professional.

Doorstead is here to help simplify property management for you. Stay tuned for more insights or book a call to learn how to maximize your property investment.