If you’ve decided to rent out your home rather than sell it, you might be considering whether to hire a property manager. What exactly is a property manager? Managing a rental property involves various responsibilities, such as finding tenants, setting rental rates, and handling maintenance issues. A property manager can help streamline these tasks and alleviate some of the burdens associated with renting out a property.
A property manager is responsible for overseeing the daily operations of a rental property. Their duties typically include screening and selecting tenants, marketing the property to attract renters, drafting and signing leases, and setting competitive rent prices. They also handle the collection of rent, coordinate maintenance and repairs, and manage the property’s finances and budget for ongoing maintenance costs.
One of their key responsibilities is handling maintenance requests. They respond quickly to repair needs, which is crucial for maintaining tenant satisfaction and avoiding legal issues related to habitability. Additionally, they manage the process of showing the property to potential tenants, handling applications, and managing lease agreements. Many management companies have specific websites specifically designed to accept applications.
The cost of hiring a manager typically ranges from 8-12% of the monthly rental income. Additional fees may apply for specific services, such as ongoing maintenance, tenant placement, and lease renewals. Some property managers also charge for vacancies or additional administrative services. These fees can vary based on the management company’s policies and the property’s location.
Deciding whether to hire a property manager depends on your specific needs. If you own multiple properties or if your rental property is located far from where you live, a property manager can be particularly beneficial. They can handle day-to-day issues, maintenance, and tenant interactions, reducing your overall stress. However, hiring them also means giving up some control over property management and incurring additional costs. Furthermore, their standards for tenant screening might differ from your own, and finding a reliable manager requires careful research and clear communication.
Overall, hiring a property manager can be a valuable decision if you seek to minimize the time and effort spent on managing your rental property. Evaluating your situation and the potential benefits and drawbacks will help you determine if a property manager is the right choice for you. If you own rental properties in the Baton Rouge market, please give Smith Hearn Property Management consideration when hiring a management firm.
