The residential real estate market burned especially hot the last few years, with over 6 million existing homes sold in 2021 alone. While many homes sold to individual homeowners, real estate investors and REITs snapped up good deals when they presented themselves.
Of course, people who are new to buying investment properties often underestimate the true level of work involved in managing those properties. With prices cooling off, investors will find more opportunities to amplify the workload.
Some investors double down on doing the work themselves, while others look to a property management company to help shoulder the load. Not sure if you need help? Keep reading for four signs you should hire property management services.
1. You Don't Know the Law
Owning rental properties means you must stay on the right side of both state housing laws and federal fair housing laws. These laws impact everything from what you can ask on a rental application to when you can evict someone.
Even if you brush up on the relevant laws, it's very easy to overlook exceptions or misinterpret the laws. A property management service will know what you can and cannot do within the bounds of the law.
2. Marketing Isn't Your Strong Suit
One problem that many owner-landlords face is ongoing vacancies. Throwing up a for rent sign doesn't get it done these days. Instead, you need a rental property marketing strategy.
These strategies involve everything from pricing units to choosing the right communication channels to promote the units. For example, do you stick with local publications or go with social media and big real estate websites?
If this isn't your bag, the best property management teams can build a plan for you.
3. You Already Have a Job
Many real estate investors get into real estate because their jobs give them enough money to want something beyond an IRA or stock market account. Of course, those jobs typically require that you put in your 40-50 hours a week.
That doesn't leave you much time for things like rent collection, scheduling repairs, dealing with vendors, and screening new tenants. One of the benefits of property management companies is that they take those tasks off your plate.
4. Portfolio Growth
As your portfolio grows, the amount of time you must put into managing those properties will only grow. While you may have found a balance when you only owned one or two properties, striking that balance will become more difficult.
If that happens, enlisting a property management service can take the pressure off.
A Property Management Company and You
When many people buy their first investment property, they assume they'll handle all of the landlord duties. As the true scope of those duties becomes apparent and you acquire more properties, many investors find they'd rather spend less time managing.
A property management company relieves investors of the kind of day-to-day concerns that consume your time.
Home River Group specializes in property management services in the Chicago area. For more information or questions, contact Home River Group today.