A friend of mine recently bought an apartment building here in Los Angeles
and asked me “How do I know when/if I need property manager?” To
which I told him there were several reasons to hire – or at least consult with
– a management company. I then proceeded to rattled off my top ten list
of “you know you need a property manager when:”
1) If you find yourself taking calls at 1am to fix a broken water pipe in
your building – you might need a property manager.
2) If you don’t remember the last time that really nice guy in unit #108
paid rent – then maybe you need a property manager.
3) If most of your residents have pets and you have never heard of a pet agreement or pet deposit – you might want to hire a property management
company.
4) If you just realized that the residents in unit #207 moved out TWO months
ago – it might be time for a property manager to take care of your building.
5) If you find yourself spending more time at your apartment building
coordinating maintenance than you do with your wife, kids or friends – you
should call a property management company.
6) If you think your apartment building MIGHT be under rent control, but you
are not sure what that means – you should call a property management company
(or your lawyer) immediately.
7) If you do not know what your Net Operating Income (NOI) is or how to find
out – it may be time for a property manager.
8) If a resident moves out and it takes your handy man 2 weeks to touch up
paint and clean the carpet – you should consider a property management
service.
9) If you are not sure how much rent to charge for your newly vacant
apartment or single family home – perhaps you should think about a property
manager.
10) If you moving out of the city, state or country and plan on keeping your
investment property – you DEFINITELY should speak with a property management
company.
The point that I was attempting to drive home to my now landlord-of-a-friend
was that there is quite a bit more to property management than simply
collecting checks and repairing toilets. An investment property is a
living, breathing entity that requires a significant amount of time and
attention. If my friend was not ready, willing and/or able to take on the
responsibility, then there was most certainly a property management company in
his area that would be more than happy to help him out.