3 Signs Hiring a Property Manager for Your Investment Property is the Right Move

Do you own an investment property, or is it on your bucket list? It's a worthwhile investment -- though the cost of entry is steep compared to other investment opportunities. 

According to one source, the average price for a residence in the U.S. as of the second quarter of the year is $412,300. That's down 3.4% compared to the first quarter of 2024.

But buying a rental property doesn't necessarily mean serving as the landlord. Some people love to do everything independently and wouldn't seriously consider hiring a third party to help. Doing so, however, means having no life since you'll be tethered to your rental property 24/7.

If you own a rental property and are struggling to meet your landlord obligations, consider ways a property management firm can help you. It can make a big difference to you, your tenants, and your real estate.

Here are three signs you need a property manager, even if you'd prefer to handle things independently.

1. You're Doing a Poor Job Finding Good Tenants

Let's face it. Some people make lousy tenants. They need a place to stay but feel so entitled that they'll stop paying rent for even the slightest grievance. That's a bad deal for you since tenants who don't live up to their obligations will stop the flow of monthly rental income.

A property manager can help you find good tenants who pay rent, take care of their rental units, and treat other tenants and neighbors respectfully. So, if you've had mixed results when vetting tenants independently, consider hiring a property manager with a process for screening tenants. You'll immediately increase your chances of finding quality tenants who won't cause issues.

2. You're Having a Hard Time Dealing With Tenant Queries

Another sign it's time to consider hiring a property manager is if providing customer service is a handful or an annoyance. Whether you're already too busy or don't like having tenants call at all hours, retaining the services of a property manager can be the solution you and your tenants need. You can tell tenants to phone the property manager with any requests, and the service provider will ensure your tenants are well taken care of.

Remember that tenants won't stick around if they feel their concerns are of no concern. If you invest in screening protocols to get the best candidates as tenants, you should follow up with responsive, professional, and courteous customer service. Otherwise, good tenants will pack up and leave once their leases expire. That'll ultimately cost you more in the long run.

Hiring a property manager is an investment in the overall success of your investment property strategy.

3. You Need Help Keeping Your Rental Property in Tip-Top Shape

While providing great customer service is a must if you want to keep tenants around, so is taking good care of your rental property. Tenants want to live in rental units they can be proud of. If maintenance and repairs are an afterthought rather than purposeful, tenants won't be pleased. And they might be inclined to look elsewhere for more suitable housing when their leases end. 

Taking good care of your investment property isn't just about meeting the needs of tenants. You'll want the real estate to increase in value over the months, years, and decades. But if it's in a state of disrepair, that can fritter away any property value appreciation. 

Consider hiring a property manager if you can relate to these three scenarios. While some rental property owners like being landlords, many realize it's too much work for one person. It's worth getting outside help when so much is at stake.