Managing a property can be challenging and time-consuming, especially for those new to the process or with multiple properties. The question of whether or not to hire a property manager is one that many rental property owners grapple with.
While some may believe that managing a property on their own is a cost-effective option, the reality is that a property manager can bring a wealth of expertise, resources, and experience to the table that can ultimately lead to a more profitable and efficient operation.
A property manager’s role is to support your property’s owners, investors, and tenants. From repairs and maintenance to overseeing financials and being on call for emergencies – a qualified property manager makes it easy for everyone!
This guide goes through some of the most common reasons why people hire a Property manager, as well as some pros and cons. It also provides tips on finding a good PM for your needs.
Let’s explore this guide!
Why Should I Use A Property Manager?
Property managers are experts at managing properties. They can save you money and time by taking care of the small details homeowners often overlook.
It’s important to remember that property management service is not just about maintenance work, although that is a large part of the job. Property managers also market your home, prospective screen renters, collect rent payments, communicate with tenants, and perform many other tasks that can make your life easier.
If you’re thinking about hiring a property manager for the first time, here are some reasons why you should use one:
Knowledge Of Local Market Conditions
A property manager typically deeply understands the local real estate market, including current rental and vacancy rates and the demand for different properties. This knowledge can help ensure that the property is priced competitively and marketed to the right audience.
Cost-effective solutions
A property manager can help property owners save money in the long run by identifying cost-effective solutions for maintenance and repairs. They have a network of reliable vendors and contractors that can provide services at a fair price.
Access to Sophisticated Tools and Technologies
Professional property managers have access to advanced tools and technologies that can help to streamline the management of a property, such as software for tracking expenses, rent collection, and maintenance requests.
Handling of Insurance Claims
Property Managers can also assist property owners with Insurance claims, and they can help guide property owners through the process, provide necessary documents, and communicate with the insurance company to get the most out of the claim.
Tenant Screening
Property managers have the experience and knowledge to screen potential tenants effectively, which can help ensure responsible and reliable tenants occupy the property. This can help to reduce the risk of property damage and unpaid rent.
What Does A Property Manager Do In Canada?
In Canada, a property manager is responsible for overseeing the day-to-day operations of a rental property. This may include tasks such as:
- The marketing and advertising of the property to potential tenants
- Taking prospective tenants on a tour of the property
- The process of processing applications and screening tenants
- Obtaining and signing a lease agreement
- Rent and security deposits are collected
- Taking care of maintenance and repair issues
- Responsible for managing vendor relationships (e.g., landscaping, cleaning, and repairs).
- Governing tenancy disputes and complaints
- Maintaining a schedule of routine property inspections
- In case of eviction, overseeing the proceedings
- Maintaining accurate records and financial reports
- Fair housing laws and other local and federal regulations must be followed.
Along with these responsibilities, a property manager in Canada may also supervise multiple properties for a single owner or group of owners. They may also provide consultative services to property owners, such as suggesting ways to improve the property or increase rental income.
All things considered, the main goal of a property manager in Canada is to ensure that the rental property is well-maintained, occupied by reliable tenants, and generates a positive return on investment for the owner.
Benefits of Hiring A Property Manager In Canada
Hiring a property manager can save you time and money. You can focus on other aspects of your business while they take care of your property management needs. Here are some benefits of hiring a property manager:
Handling Daily Operations
Keeping your property rented and occupied is one of the most important jobs a property manager has. Not only does it keep your investment from sitting empty, but it also ensures you’re collecting rent regularly.
A professional property manager will have the experience needed to handle all aspects of the daily operations of your rental property.
They will be able to screen tenants, quickly find new ones when needed, take care of repairs and maintenance issues, collect rent payments, and more. This frees up your time so that you can concentrate on other aspects of running your business.
Massive Network of Maintenance Contractors
One of the biggest problems for landlords is finding reliable contractors to work on their properties. A good property manager has connections with hundreds, if not thousands, of different maintenance contractors who will be able to take care of any repairs or maintenance issues as soon as possible.
This can make it much easier for them to put off paying for expensive emergency repairs until after hours or on weekends when no contractors are available.
A good property manager will also know which contractors are reliable and trustworthy to ensure any work performed is done properly and safely.
Extensive Background Check of Future Tenants
The first step in finding great tenants is conducting an extensive background check. Your property manager will check credit scores and criminal records, among other things.
This helps ensure that you only rent your property to people who will take good care of it, so there are no surprises when it comes time for them to move out. It also makes sure that your property is safe from theft or defacing.
Analyzes Your Price
A property manager will analyze all available properties in your area and determine if yours is priced correctly or not. If it is overpriced, they will let you know how much you need to lower it to make it more attractive to potential renters.
If it is underpriced, they will tell them how much you should increase the price to make more money on each rental period.
A good property manager can help you make better decisions about how much rent should be charged for your home or business location based on its condition and location within the surrounding area.
Collects Fee (Even Late Payments)
Property managers earn a commission based on their services, so they have the incentive to ensure tenants pay their rent on time. Tenants who do not pay their rent on time can be evicted, but this is costly for landlords and stressful for tenants.
A good property manager will collect late payments from tenants so that you do not have to worry about collecting money from them yourself.
This allows you to focus your time and energy on other important tasks, such as finding new tenants or maintaining your property’s appearance.
Drawbacks of Hiring A Property Manager In Canada
An experienced property manager can be an asset to your business if you want to operate a successful rental property. However, you must be aware of some drawbacks of hiring a property manager in Canada.
Costly
While hiring a property manager can save you money on things like advertising, it is still an expense that will cost you money. Property managers typically charge anywhere from 10% to 15% monthly rent.
This fee includes all of the costs incurred by the manager in managing your property (such as taxes, insurance etc.) as well as paying themselves for their services.
Because of this high percentage fee, consider other options if you have a small number of tenants or are only looking for short-term management services.
Tenant Screening Process
Many property managers claim to do thorough tenant screening but often rely on the same database landlords use.
This database is not very thorough and does not provide information on evictions or criminal records, which can be a huge problem for landlords if they ignore it. This is why checking references and ensuring prospective tenants have solid credit scores before signing a lease is essential.
Higher Maintenance Costs
When you hire a property manager, they get paid based on the amount of work they do and the percentage of rent they collect.
This means they will charge you higher maintenance costs than managing your property, where you have more control over operations and can cut costs by doing things yourself.
Lesser Control of Operations
Another major drawback to hiring a property manager is that it will take away some control from you as an owner when making important decisions about how your property should be managed.
This can include whether or not certain repairs should be made immediately or if they can wait until next year when funds become available through rent collections or other sources of income at the property level.
Marketing Process
A virtual drawback of hiring a property manager is the marketing process or advertising and promoting a property.
This is because property managers typically handle the marketing for properties under their management and may need more resources or expertise from a dedicated marketing team.
Further, property managers may have different levels of flexibility regarding marketing strategies and tactics. They may need to respond more quickly to changes in the market or feedback from renters or buyers.
As a result, properties under the management of a property manager may be marketed less effectively if a dedicated marketing team were in charge.
When Should You Hire A Property Manager?
Most people think property management is only for large corporations or real estate investors. However, the truth is that there are many reasons why you should also consider hiring a property manager for your own home.
Here are some of the most common reasons why you should hire a property manager:
What Are My Skills To Handle My Rental Properties?
Knowing and experiencing the business will help you manage your rentals successfully. As a landlord, you will be well prepared to deal with the many obstacles that may arise.
If you are a landlord who is new to the business, it can be challenging to know what you need to do. A property manager is an experienced professional that can take care of all the day-to-day tasks related to running your rental property.
They will help you with all aspects of property management, including finding new tenants, maintaining the property, and selling and buying property fast. They can also advise you on what needs to be done regarding repairs or maintenance at the property.
Do I Have Enough Time?
Property management can be full-time, especially if you have multiple units in multiple states or properties in different cities.
If you need more time to devote to managing your properties effectively and efficiently, then hiring a property manager will save you time and money by eliminating expensive mistakes that could cost you thousands of dollars in lost revenue every year.
Do I Respond To Emergencies Immediately?
Consider hiring someone to manage your property when an emergency needs immediate attention. There are times when an emergency can occur, and you may need someone on call 24/7 to deal with the problem immediately.
Hiring a property manager might be beneficial if this is the case. They will be able to respond immediately while keeping your renters safe and secure in their homes during these times of crisis.
Can I Find Good Tenants?
As an owner, your primary goal is to find the best tenants for your properties, then hiring a property manager is an excellent idea.
Property managers can access large databases of potential tenants and match them with landlords based on their needs and preferences. They will also screen applicants so only qualified candidates can rent your home or apartment.
Do I Trust Someone Else?
If you are a new homeowner or a landlord, you may wonder if you should hire a property manager to manage your investment property. The answer to that question is, “It depends.” If you are comfortable with letting someone else handle the day-to-day operations of your property, then hiring a property manager may be right for you.
Can I Deal With Different Tenants?
The answer to this question could determine whether or not hiring a property manager is right for you. Find yourself dealing with difficult tenants every day. It may be time to hire someone with experience dealing with difficult people and situations so that you don’t have to worry about it anymore!
Can I Afford A Property Manager?
If you’re worried about whether or not you can afford to hire a property manager, don’t be! It’s more than just big investors who need help managing their properties.
Many small investors could benefit from having someone else take over some of their responsibilities. Your finances will improve when a property manager takes over some of your day-to-day tasks!
How To Hire The Right Property Manager For You?
As a rental property owner, it is essential to carefully evaluate and select the right property manager for your investment. To ensure that you are hiring the best fit for your property, consider the following steps:
- Ensure you investigate property management companies and individual property managers in your area. Consider those with experience managing properties similar to yours and a proven track record of success.
- Verify the property manager’s credentials, including any licenses or certifications relevant to property management.
- Ask for references from past or current clients, and follow up with them to better understand the property manager’s work ethic, communication style, and overall effectiveness.
- Ensure that your budget and management align with the fees and services provided by the property manager.
- Schedule an in-person or virtual interview with them to determine if the property manager or management company will be a good fit for your property. Ask about their experience, management strategies, and communication style.
- To assess their professional reputation and the level of service they provide, review their online presence, including their website and any online reviews.
- Once you have found the right property manager, you should sign a management agreement that clearly defines any fees, services included, and expectations of both parties.
By following these steps, you can increase your chances of hiring a competent and professional property manager who will effectively manage your investment and help maximize its potential returns.
Check Out How To Hire The Right Property Manager:
Can You Have An Alternative For Property Managers?
If you’re a landlord, hiring a property manager can be a great way to free up time and energy that you can use to run your business. But what if you need more time for that step? What if all you want is some help with one rental property?
Here are some alternatives that might work for you:
Self-Management
One alternative for property managers is self-management, where the property owner manages the property. This option can be cost-effective as there are no management fees to pay, but it also requires a significant time investment from the owner.
For this reason, the owner is responsible for advertising the property, showing it to prospective renters, screening, taking care of rent, maintenance, and repairs, and handling any legal issues.
Choosing A Property Management Company
Another alternative is to hire a good property management company. These companies take on the day-to-day responsibilities of managing the property on behalf of the owner.
As part of this process, the property may be advertised, tenants may be found, a background and credit check may be conducted, rent may be collected, and legal matters may need to be addressed.
These companies can also provide additional services such as financial reporting and analysis. However, hiring a property management company can be costly, with management fees ranging from 8-12% of the rent collected.
Property Management Software
Another alternative is using property management software. Many aspects of property management, including rental payments, vetting tenants, and communication, can be handled automatically by this program
This can save property owners time and money, but it also requires an initial investment in the software and ongoing subscription costs.
Engaging The Services Of A Property Consultant
A property consultant can provide advice and guidance on managing a property. They can help property owners with budgeting, market research, and advertising.
They can also offer support and advice on legal and regulatory issues, but unlike property management companies, they do not handle ongoing management tasks.
Alternative Apps
Various advanced property management solutions can aid property proprietors and managers accomplish diverse tasks associated with the administration of a property. Some of the most sophisticated options include:
- Building Engines: A comprehensive property management platform that facilitates the management of tasks such as work order administration, tenant communication, and reporting.
- AppFolio: A cloud-based property management software that proffers features such as online rent disbursements, tenant screening, and maintenance requests.
- Rentec Direct: A property management software that assists with rent collection, tenant screening, and property listing management tasks.
- Landlordy: A property management app that facilitates rent collection, expense tracking, and lease management tasks.
- BuildingLink: A property management app that facilitates the management of tasks such as work order administration, package tracking, and resident communication.
- TenantCloud: A property management app that proffers features such as online rent disbursements, tenant screening, and maintenance requests.
The best alternative for property managers depends on the specific needs and goals of the property owner. It’s essential to weigh the costs and benefits of each option and choose the one that best suits your needs.
FAQs
Does a Property Manager Need To Be Licensed in BC?
Property managers in British Columbia must be licensed by the Real Estate Council of British Columbia to conduct real estate investment activities. This includes leasing, renting, and managing properties on behalf of landlords.
Property managers must also adhere to the rules and regulations set forth by the RECBC to maintain their licenses. It’s essential to ensure that the property manager you are working with is licensed and in good standing with the RECBC to ensure that your interests are protected.
Do Property Managers Need To Be Licensed in Ontario?
In Ontario, there are no specific licensing requirements for property managers. However, it’s essential to ensure that the property manager you are working with is reputable and has experience in the field.
Various professional organizations, such as the Canadian Association of Property Managers or the National Association of Residential Property Managers, offer certifications for property managers.
It’s a good idea to work with a property manager who holds a certificate from a reputable organization to ensure they have the knowledge and skills necessary to manage your property effectively.
What Is The Best Property Management Company In Vancouver?
It is difficult to determine the best rental property management company in Vancouver as it depends on the specific needs and preferences of the property owner.
However, some reputable companies in Vancouver are:
– Sutton West Coast Realty
– Macdonald Property Management
– Pinnacle International
– Oakwyn Realty
– Park Georgia Property Management
It’s essential to research and compare different companies, read reviews and ask for references before making a decision. It’s also recommended to schedule a consultation with the property management company to discuss your specific needs and to see if they would be a good fit for you.
Final Thoughts
Hiring a property manager is an excellent option for anyone who wants to take their business to the next level. They can help you manage your properties so that you can focus on other aspects of your business.
However, it’s essential to consider all the pros and cons before deciding. A good property manager needs to be trustworthy and reliable, knowledgeable about the industry, and able to handle any issues.
This guide helped you understand the benefits and drawbacks of hiring a property manager and the considerations you need to make before making that decision.
Feel free to share your thoughts and opinions below in the comment section.
