Toronto Property Management, is hiring a professional right for me ?
1. Consider The Location of Your Property Compared to Your Primary Residence.
The more miles between you and your investment property, the harder it is to manage. If the distance between the two is even slightly an irritant, say you live in Mississauga and your Units are downtown, it will be harder for you to find tenants, to handle tenant complaints, to quickly respond to emergencies, to take care of maintenance issues and even to ensure rent is collected on time.
The time it takes you to get to the property and the cost of getting there will also add up. In situations such as these, hiring a good property manager can make sense and actually save you money.
2. Consider How Many Units You Own
As the number of units you own increases, so do your responsibilities. The more tenants you have, the more maintenance and tenant issues you have as well. Complaints and vacancies will increase if you are stretched too thin to look after them property. In many cases owners who successfully managed a single property on their own, get in over their heads when they start increasing the size of their portfolio and the scope of their responsibilities to include multiple units. In addition, if your units are spread across multiple properties, your time commitment will increase as you will have to manage the cash flow of each individual property as well as physically commute from property to property to handle issues.
3. Look at Your Experience Before Hiring a Property Manager
If you have invested in real estate, but don’t know the first thing about property management, hiring an experienced property manager may be the right choice for you. Learning as you go can become a very expensive proposition. For a property investor who is just starting out, hiring the wrong repairman or vendor, or taking too long to fill a vacancy because you have no experience marketing your units and interviewing prospective tenants, can quickly eat into your potential income.
4. Can You Afford to Hire a Property Manager?
Many owners dismiss the idea of hiring a professional property manager, worried that the added expense will erode their return on investment. Nothing could be further from the truth. While it is true that Professional Property Managers often charge between 8-10% of gross rental income to manage a property, they bottom line is that the efficiency and time savings they give you increase your bottom line over the long haul.
5. Do You Have the Time to Manage Your Property?
Most owners and investors have full time jobs, and have gone into investment real estate with an eye to future returns, building their net worth, and retirement aspirations. If you are an investor, and simply cannot give your property the attention it needs, the success of your investment could depend on hiring a good property manager.
Also, realize that time is money and managing a property takes time. If you feel like the day to day obligations of property management are impeding on time that could be better spent making more money at your other job, or looking for other investments, hiring an outside manager may be the right move for you.
6. Do You Have a High Vacancy Rate or Problems With Your Cash Flow?
Good property managers are skilled at finding and screening tenants quickly, and will have a network of reliable, cost effective repairmen to handle emergencies. Most professional property managers will also understand landlord-tenant law, and are experienced at establishing good long term landlord-tenant relationships, thereby reducing the risks of a legal issue in the future.
7. What is Your Tolerance for Dealing With Tenants?
Are the stresses of dealing with evictions, complaints and maintenance issues are taking a toll on you ? Or perhaps you are a first time or small investor to whom even the thought of such issues keeps you up at night, then a professional property manager may be the answer you are looking for. Especially in a fast paced rental market like Toronto, Property management is crucial to maximizing your return on investment. Property managers are skilled in handling landlord-tenant conflict. They have an understanding of landlord-tenant law, and can serve as the middle-man, or buffer, for problems. In addition, if the tenant knows they are dealing with a third party, they may act more professional as well.