Are you thinking about hiring a property manager? Kudos! Hiring a property manager is an excellent way to scale your investment properties. Property management companies are great at handling day-to-day issues.
That gives you time to invest in more rental properties. It can also free up your time to focus on other things, like family or other business ventures.
Nonetheless, if you've used a property manager in the past, it can be hard to pull back and let someone else run the show. That's why we've compiled this list.
Here are five things investors should avoid when using property management companies.
1. Talking to Tenants
If you've hired a property manager (or are thinking about it), you know you could sure use a little more time. That's why property management companies are great. They can handle the common day-to-day concerns of your tenants for you.
Allowing your property manager to handle tenant communication helps your tenants. They know what to expect and have one touchpoint for handling issues or concerns.
Investors may think they are helping out, but it often leads to confusion for tenants. Additionally, it also makes it easier for information to slip through the cracks.
So pulling back and letting property management companies handle tenant communication is key.
2. Getting Involved in Marketing and Selecting Tenants
Property management companies have experience selecting tenants to abide by fair housing laws. That makes them the most qualified people to find your perfect tenant.
It's understandable for investors to want to have more control over the situation. Nonetheless, getting involved can lead to fair housing issues.
That's why property management companies should handle marketing and tenant selection.
3. Failing to Adjust the Rent When There Is No Activity
We understand the frustration of renting your property for less than you think it's worth. That makes total sense! You've bought this investment with the understanding that it can bring targeted results.
Different seasons can affect the rental property market. That's because many students, young professionals, and families are looking for rental options.
When your home is sitting on the market for more than two weeks without activity, the rent might be too high. That can be due to the season or the market. A home that may rent for $2,500 in the dead of summer may rent for $2,100 in January.
It may seem like your saving money to wait until the market comes back up, but that often isn't the case. Lowering the rent a little bit provides a steady flow of tenants and adds more value long-term.
Property Management Companies Can Help You Scale Your Real Estate Investing
Property management companies have many benefits. A property management team can help you handle your day-to-day property issues. That way, you can focus on scaling your real estate investment portfolio.
Are you looking for a property management team with decades of experience? Contact Home River Group online or call us at 877-212-6603.
If you're looking to scale your investment properties in the Pittsburgh area, we can help.
