If you are a rental property owner or are thinking of becoming one, it may be well worth considering whether or not you could benefit from hiring a property manager.
Most people don’t realize that maintaining a property can be a lot of work. A property manager is someone with the knowledge and experience to be able to effectively find and screen people to obtain reliable tenants, deal with and solve any issues they might have, oversee repairs, maintain the property, ensure that rents are paid in full and on time, and take action if it isn’t, and do it all within the rules and regulations set by the Ontario Landlord Tenant Act. They can be responsible for all types of properties, single family homes, duplexes, triplexes, four plexes and apartment buildings. Their fees are generally charged per unit or a percentage of 4-10% of the gross monthly income plus a tenant finding fee.
Some things to ponder:
What is your general location compared to the rental property?
- If you live and work in Brantford and purchase a rental property in Toronto, an hour plus away, then it is most definitely worth hiring a property manager to save you from hours and hours of driving and wasted gas money. If you live a 5 minute drive away, maybe not.
Do you have time to properly manage your property?
- If you have a family, a full-time job or any other big commitment you may not be able to spare the time needed to properly manage your property without feeling overwhelmed. A property manager can relieve you of this commitment if need be.
How many units do you own?
- If you own 1 unit and have the extra time to put towards all of the above responsibilities then you could probably manage on your own. If you own 3 or more units, have a family and a full-time job, a property manager could be a great asset to you.
Can you afford to hire one and still make a profit?
- Take a look at your bottom line. Are you taking home enough of a profit to cover regular maintenance and repair as well as a property manager fee?
Do you know what you are doing?
- Some knowledge and education regarding the Ontario Landlord Tenant Act, how to properly manage funds and taxes are required to manage property. Whether or not you are willing to educate yourself in these subjects and feel comfortable with your capabilities can be a significant factor to think about.
Not everyone needs a property manager in order to invest in rental properties but they can be a helpful tool in building your portfolio, and it is important that you know what tools are available to you. When deciding whether to hire a property manager consider your options and circumstances to make an informed decision that is right for you and your investment adventure will be a great success.