Thinking about hiring a property manager for your rental property? I have a comparable idea: Take 10% of your rental income and light it on fire…
Unless you live in a different city than your rental property, or you’re just so busy you can’t take the 1-hour a month required to stay on top of your rental (that’s sarcasm), property managers are a waste of money and you miss out on valuable learnings when hiring one.
Let me tell you how a property manager’s day goes…
They get to the office, review when rents on their properties are due, make sure no tenants are late on rent (if they are they make a phone call to said tenant); then, they seek out new landlords to manage properties for (got to keep the pipeline flowing). If by chance the phone rings and it’s a tenant on the line with a complaint about a broken appliance, the property manager calls you and asks for cash to pay for the fix…
When listing a rental property, the manager doesn’t do anything special. They take pictures, write up a quick blurb on the property (location, layout, nearby attractions, etc.) and post it to rental sites. If there is a cost to post the ad, you’re the one who pays…
Let me give you an example of how a rental property advertisement should read:
How to write an ad for your rental property
This 3 bedroom 1 bathroom suite is located in the picturesque area of (neighborhood name). It resides on a very quiet, mature tree-lined street in a friendly neighbourhood only minutes from (include all amenities, schools and important infrastructure here). Easy access to public transit only steps away. This bright 1150 sq ft suite has beautifully finished hard wood flooring, huge windows which provide tons of natural light, new sink and shower have been installed in the bathroom and best of all, this suite has a brand new kitchen with new appliances. This suite has its own private parking pad in the back (also has ample street parking for more than one vehicle) and a gated backyard - perfect for relaxing on a summer day. This is the definition of a ‘must see’ for its price. Incredible value for only $1,075 per month. Call or email Aaron to take a look at this great home. Landlord looking for responsible and friendly tenants:)
From there, the property manager simply waits for the calls to come in, shows the property, and then vets tenants (reviews applications, employment verification and calls referrals of the best candidates). It’s a cake walk that I’ve walked dozens of times. And if the property manager can’t rent the suite in a timely manner, you cover the mortgage. They take no risk - no skin in the game…
Is that worth 6-10% of your monthly rental income? I think not.
Why Hire a Property Manager?
Most landlords hire property managers because they have little or no experience managing a rental property. This is a poor excuse - how is one to learn without doing? If that’s you, download my Ebook below - you’ll learn virtually everything you need to know to successfully find and manage your own rental property.
I can’t stress enough how simple it is to be a landlord. So long as you ask prospective tenants lots of questions, and can read people, you’re going to be a fine landlord. And the more you do it, like anything, the better you get. Property managers exist because landlords either think they’re too busy, or are scared to do it themselves. Buck up and manage your own investment property - don’t light a percentage of your rental income on fire every month.
Stay hungry,
Aaron
P.S. Subscribe to my newsletter below to get more valuable information on rental properties and investments. Only my best content will land in your inbox.
