It is reasonable to handle every task if you are just starting your property management journey. Finding a good investment property and taking charge of maintenance, repairs, and bookkeeping can be manageable all by yourself at first.
However, there will come a point where your rental property business and investment portfolio will grow. Your daily tasks as a landlord will be too much to handle just by yourself. You will put more importance on your time and prioritize protecting and growing your investments. In this situation, outsourcing vital property management tasks can be helpful to balance everything.
Here are some aspects of property investment that you can outsource to unburden yourself of the pressure of the business and focus more on the money-making side of it.
You will spend most of your time looking for new markets and opportunities if your goal is to grow your portfolio. Hiring a licensed real estate agent to tackle this task is a smart move. Agents have access to active MLS listings and can share information about properties in your local real estate market.
If you want to invest in a new area, a real estate agent with a good grasp of local market dynamics can be helpful for your investment journey. Your hired agent can give you insight into which area to watch, which neighborhood is evolving, or where to locate undervalued properties.
You can ask for a discount if you are going to purchase multiple properties from the same agent. You can save money working for the same agent as your business relationship develops.
Make sure your general contractor is included in your contact list. It must be your priority since you will need a general contractor if you find properties requiring repairs or renovation. Working with a trusted general contractor to do this task for you as an active property investor can be a great time- and money-saver.
The general contractor can also be your middle point to other vendors, such as electricians, plumbers, and house painters. If you have them in your contact list, you can ensure that projects are on schedule and within budget. Hiring a general contractor with years of experience and a vast network of other vendors is vital for anyone venturing into rental property investment.
Handling the daily tasks associated with being a landlord can be stressful and time-consuming, especially if your investment portfolio is growing. In this case, you have to outsource a property manager to tackle the responsibilities related to your rental business.
The property manager will handle many aspects of the rental process, such as property showing, tenant screening, move-in/move-out process, rent collection, and responding to maintenance/repair requests.
The cost of hiring a property varies. Typically, property management fees make up around 7-10% of the monthly rent. Be sure to make the most of this expense by looking for a reliable and experienced property manager. If you cannot yet afford a property manager, consider buying property management software to streamline your rental process.
Although hiring an accountant can be expensive, having them check your books and ledgers on a regular basis will help you save time and money. Certain aspects of accounting may or may not be covered by your contract if you are using a property management company or software.
If this is the case, hire an accountant that specializes in working with real estate professionals since they will be familiar with the relevant laws and regulations of the industry. As your investment portfolio expands, calculating taxes becomes more challenging. Thus, having a certified accountant is a huge advantage for your rental business.
Real estate transactions, including home purchases, house flips, and rental property investments have rules you must follow and requirements you must meet. These can be hard to understand and can take much of your time. You should get the services of a real estate attorney to take on the legal aspects of your property investments.
Neglect in filing a permit, errors on your closing documents, or skipping a required disclosure can put your business into a legal predicament. Moreover, you will encounter complex laws regarding landlord-tenant relationships.
Working closely with a real estate attorney can help ensure your rental business is on the right side of the law and protect your investment from legal challenges.
First-time property investors typically manage every aspect of the rental business. While this option can give you experience and understanding of the many aspects of property management, it can be challenging if you are dealing with multiple rental properties. Thus, outsourcing certain tasks vital to manage your property investments is advisable.
Consider hiring a general contractor, property manager, real estate agent, attorney, and accountant to ensure your rental business is in good hands.