Is it worth the investment to hire a property manager for you multifamily asset?
If you have just secured a multifamily investment, what are your next steps? It may be your first real estate asset or simply the newest addition to your multifamily portfolio. Whatever your position, it’s essential that you have a plan in place to manage your property successfully.
Good asset management is critical to maximize your return on investment. You must ensure you collect rents on time, stay on top of any maintenance issues, and keep your tenants satisfied. Keep reading to explore whether you should handle this yourself or whether you should hire a property management company to do it for you.
Depending on the size of your multifamily asset, managing it can be very time-consuming. Along with day to day operational obligations, there are also other processes that require a substantial investment of time. Finding and vetting new tenants is one of the most time-intensive aspects of owning a multifamily property, and it’s here where a property manager can prove to be invaluable. Working with a reputable, experienced property management company will improve your chances of attracting quality renters who pay on time and who will not cause unnecessary problems for you or other residents.
It’s no secret that hiring a good property management company requires an investment on your part. There may be some aspects of your property that you feel comfortable managing, while others you want to delegate to the property manager. The fees will vary because of this. A rough estimate is between 8–12% of the effective gross income of the property, but this will depend on your individual situation.
Managing your property yourself allows you to keep the best control of your asset. You can foster good relationships with your tenants, manage their issues, and stay on top of any building maintenance. However, if you get busier regular walkthroughs and check-ins with tenants may become more challenging. At this point, a property manager can be extremely useful: they’ll act as a liaison between you and your tenants, visit the property as often as you require, and can help spot potential maintenance problems before they become bigger issues.
If this is your first multifamily property, you may find you still have a lot to learn. When you work with a property management company, you can take advantage of their wealth of experience in the industry. A qualified property manager will be able to offer you advice on maintenance issues, tips on tenant retention, and may even be able to give improvement recommendations.
As well as providing expert assistance to investors buying or selling multifamily properties, we also offer comprehensive property management solutions. Our partnership with Florida Realty Investments ensures that you always have the tools and resources you need to run your property successfully. You can learn more about our asset management services here.