This article is the first one from a 2 part series. The second article is: How to Select a Good Managing Agent.
Do you manage your own investment property? How much time and energy does this take on monthly basis? Is it worth it?
The question we will explore in these two articles, is whether or not is worth your while managing your own investment property.
Why use managing agents?
The main problem with managing your own investment property is usually the time and energy it takes on monthly basis. You have to carefully screen tenants, maintain applications, do the credit checks (those cost as well), ensure the lease agreements are correct and up to date with the law, inspect the properties on regular basis, collect rent, organize repairs and so on.
Due to these factors and others, some times it just may be a better choice to appoint a managing agent, or maybe not. Lets first explore the value a good managing agent can provide.
What is the value in a good managing agent?
A good managing agent will ensure that you are compliant with relevant laws and acts related to your property and the business of renting. Some of the other things good managing agents can provide, include:
* Finding and thoroughly screening tenants to ensure you get a reliable and responsible tenant.
* Signing lease agreements and making changes to them when necessary.
* Ensuring that the rent and any utilities are collected on your behalf.
* Inspecting rental properties at the beginning of lease agreements and at the end of the lease.
* Managing rental deposits and refunds once properties are inspected.
* Maintaining and providing you with monthly statements, which document all financial transactions relating to the property.
* Maintaining and providing you with an itemized annual account at the end of each financial year.
* A big time saver is arranging and organizing necessary repairs to the property.
* Dealing with tenants and trying to resolve disputes when they arise.
The last point is very important as it can take lots of heartache out of the process. Landlords tend to get emotional about their property, they are often not objective. While a good managing agent can deal with disputes with a 'clear head' and resolve issues FAR more easily.
Good managing agents can provide advantages. Such advantages can be of a financial nature or just a hassle reducer.
However, selecting a good managing agent can be a totally different story. If you want to know, read the article: 'How to Select a Good Managing Agent'.
In the second article we will first explore some factors in selecting a good managing agent and then conclude with the value of hiring such agent or just managing the property yourself.
