Investing in a property is not a simple matter of putting down money now for guaranteed return on investment later. Many factors go into a successful investment property, and to maximize revenue, you must make some important decisions.
First and foremost, be sure to consider the cost versus the benefit of hiring a commercial property manager. The price of a property manager tends to be a percentage of the monthly gross income for all of the properties the company is overseeing. This percentage can be anywhere from 4 percent to 10 percent, depending on the number of properties. However, having a good property manager in place helps protect your investment for the long term, ensuring your property retains its quality and value.
On the other hand, property investment can be a major time and monetary commitment. Because it takes many years to earn back the initial investment money, it is important to maintain a good reputation for service and responsiveness. For example, living far away from the investment property could impact your response time on crises, which could in turn impact the reputation and value of your property. Working with a property manager that is physically nearby can mean quicker response times and better tenant sentiments.
Depending on the size of the property, a manager can also clean and maintain the common areas on a regular basis to keep up the overall look of the building. Some investors have the time to handle those responsibilities themselves, but others might be better suited to find a property manager to take care of this and other issues on an ongoing basis.
Be sure to also look at your own experience with property management. Having the proper response is just as important as the timeliness of the response. Do you have a list of plumbers or repair professionals you trust to respond late at night? A property management provider likely already has that list and knows what to do in the event of an emergency.
You should also be aware of laws and regulations around property ownership and renting established via the Fair Housing laws. Being sued for discrimination when trying to rent out a property won't do you any favors when it comes to your reputation or investment return. Your property manager is representing you in more ways than one, so make sure the firm you hire has a history of sound practices.
Investing in a property is a big decision, but hiring a property manager can provide you with the peace of mind and security you need to make your investment a successful one.