The investment in a property management company is an important decision, one made based on your individual needs as a business owner and investor. There’s no right or wrong decision about when to invest. Many times, it’s about meeting your unique needs right now and doing what’s best for your investment business in the short and long term.
Consider a few key factors key to making the decision to hire a property management company. You may find this step could enhance your bottom line and improve your business operations.
Where you live in relation to your properties plays a role in your decision to hire a property management company. If you live nearby, it’s easy enough to stop by, make upgrades, handle tenant needs, and get back home. For those investing at a distance, a management company is critical to remaining feet-on-the-ground near your property.
Stress of Ownership
Even in the ideal situation, stress is a big component of any landlord’s day-to-day property management in Toronto. There will be problems along the way, including:
Disputes among tenants or neighbors
Disagreements in payment terms
Animal and visitor problems
Parties well into the night
Maintenance and cleanliness concerns
Not all property owners want or can manage these concerns on an ongoing basis at 24-hours a day. A property management company can.
Some property owners become overwhelmed with the process of managing their property, especially as you begin to add more to your line up than just a single location. If you’re having difficulty balancing your time or the demands of the property, it’s necessary to seek help before that leads to more costly problems down the road.
Your Short- and Long-Term Goals
Next, consider what goals you have. If you are only planning to ever own one property, managing it yourself can be doable with improved strategies. If you want to increase your profit margin and build your portfolio, you’ll need to double or triple the amount of time and attention you put into properties. Even the investment of just a second property makes it imperative to consider the value of a property management company.
More so, if you’re spending all of your time managing your existing properties, you may lack the time to seek out new opportunities. This, in itself, can limit your ability to expand and grow.
How Much You Want to Be Hands-On
Even with a single property, it may be beneficial to invest in a management company if you simply cannot be as hands-on as you would like to. This includes areas such as the following:
Being available 24-hours a day to handle emergencies or non-emergency calls
Balancing improvement decisions
Handling the cleaning and property management
Making repairs as they occur
Managing the legal elements of property ownership; meeting expectations between tenant and landlord
Managing the financial management of your business of ownership
Consider the financial benefit of investing in a property management company. Is your time best spent working hands-on with each property you own or better managing the growth of your business? The cost of having a professional handle these tasks can significantly improve your bottom line – you have experts handling the work, ensuring it is done correctly and cost-effectively.
Making the decision to hire a property management company sooner rather than later tends to be the right move for even first-time investors.