Investor's Guide: What You Should Consider About Property Management

Many investors see property management companies as an extra expense that is not necessary. Sometimes this can be true. If an investor has one or two properties, located in the same city, it is more than possible to manage it themselves. Having multiple properties often makes property management companies worth the investment. Managing property is no easy task, whether it be by an individual or a company. The investor or company must keep up on maintenance, be constantly accessible, be able to draft leases with adequate protection, be able to hire maintenance professional at reasonable cost, and screen for quality tenants.

If maintenance is not routinely kept, it can lead to more severe problems and potential lawsuits. Staying on top of these matters, and having trustworthy professionals that can do the work quickly with high quality, is crucial. It is also crucial to be available 24/7. If a tenant has an emergency they need to be able to contact the investor or the property manager ASAP. That is why it can be beneficial to have a property management company, often they have multiple employees available at all times to help the tenant through the emergency situation. At KC Metro Property Management (our sister company), we have an emergency line and an after-hours line for tenants to call for these types of situations. KC Metro Property Management also provides information to the tenant to help coach them before these situations arise. We provide tenants with a troubleshooting guide for quick repairs, and an outline of situations when the tenant should call the proper authorities before contacting property management to address the situation correctly and quickly.

Knowing the best way to write up a lease is easily one of the most important things to know how to do, if not the most important. If the investor understands legal jargon then it could be easier to do on one’s own, but if not, then having a leasing agent with proper experience is the best and safest route. For property investors who do their own management, it is crucial to have contacts in the maintenance profession. Companies often have professionals hired and ready to go for any maintenance issues that need to be taken care of and don’t have to worry about finding someone last minute.

Finally, the most time consuming and stressful part of managing a property is screening for quality tenants. This can be a long and arduous process and it is often much easier/safer to delegate this responsibility to a professional. Property managers are prepared for the work it takes and look for the best possible tenants to take care of investment properties. While investors can most definitely manage their own properties, and even though it can be a way to save money, sometimes spending extra money to save time and stress can be more appealing and be a great investment, because we all know, time is money. There is also the possibility that the time an investor spends managing their own properties could interfere with the investors’ goal of growing their rental portfolio. So why not take steps to make the investment as passive as possible?