Did you know the average price for a home in Texas in mid-2023 was $303,414?
Considering the cost of buying a home, you’ll want to invest in keeping it in great shape. That’s even more the case if you’re buying an investment property with plans to rent it out. Many Texans buy rental properties to diversify their investment strategies. It’s about getting passive income monthly and enjoying the property appreciation over months and years.
But one decision you’ll have to make is whether or not to hire a property manager. When signing up with a reputable service provider, you must pay a percentage of the monthly rental income.
The percentage will differ based on the service provider and the services offered. But it’s usually somewhere between the high single figures and the low double figures.
You’ll need to decide whether the cost is worth the benefits. You’ll find that a reputable property manager like Green Residential makes and saves you money.
Continue reading to see four ways hiring a property manager puts money in your pocket.
You’ll Get Help Finding Good Tenants
Have you seen programs online or read articles about tenants causing their landlords grief? It happens far more often than you think — but you don’t want to be on the receiving end.
No one can guarantee that a tenant won’t cause you trouble. That said, a property manager will screen would-be tenants to increase your chances of finding people you want to keep long term. Good tenants who pay their rent on time every month are the definition of passive income. Things will run like clockwork, and the money will flow to your account without interruption.
If you decide against hiring a property manager, you’ll get to keep all the rental income. But that’s assuming the tenants you approved pay on time every month. Many property owners opt to do everything independently but soon regret that decision.
Property managers have screening processes to ensure your tenants have the financial wherewithal to afford rent, have a history of paying rent at previous addresses, and more. Doing things without help is like rolling dice and hoping for the best, while hiring a property manager is like getting a professional with a system designed to increase the odds of success.
Don’t gamble with your investment — especially one that costs hundreds of thousands of dollars. Hiring a property manager costs a small percentage of monthly rent. But the returns can be huge.
You’ll Get Help Maintaining Your Rental Units
A service provider is worth its weight in gold. You’ll see this when it comes to maintaining your investment property. You can count on a property manager to ensure your rental property is maintained and repaired as required. This attention to upkeep will facilitate property valuation appreciation and higher returns if you monetize your investment property.
So, the cost of a property manager is a small price when considering how a well-cared-for rental unit will increase in value. Even if you’re open to doing this independently, it’ll be difficult for a non-professional to stay on top of everything that goes into proper upkeep.
Remember, as well, that a property manager has contacts that the average person does not. You can count on a property manager to find contractors at reasonable rates to save you money. Property managers also know suppliers where they can get materials at discounted prices. You’ll be able to get the workers and the materials you need at a discount. Any money you save is money you can use for other things.
You’ll Get Help Setting Rental Rates
Another way a property manager will put money in your pocket is by advising on rental rates. While it’s a good idea to give tenants a good deal, you don’t want to leave too much money on the table. You can ask the property manager for input that helps you make a good decision. You want the rent to be fair for tenants and yourself.
Different market dynamics are at play in different real estate markets. If you want to maximize your passive income monthly, consult a property manager that can give you good advice. That can put a lot of money in your pocket — money that you might otherwise leave on the table.
You’ll Get Help Deciding Whether to Buy a Property
It’s vital to find the right investment property in the first place. The chances are you’ll have to sink some money into any property you buy before renting it out. But you don’t want to buy a property and later find some seriously costly problems you didn’t know about.
That’s where a property manager like Green Residential comes into the picture. For example, you can order a certified home inspection for any rental property for sale. If such an inspection uncovers things that would cost you a fortune to fix, you can make an informed choice. That can come in useful whether you’re adding to your portolio or buying your first rental property.
The money left in your pocket can be substantial if, after the inspection, you walk away from a home that might have caused you to go deep into debt.
Need a Property Manager? Green Residential Has You Covered
Whether you own a single rental property or a portfolio of investment properties, we have the services you need. At Green Residential, we specialize in helping property owners in Houston and Austin manage their rental units and take good care of their tenants.
Get in touch to see how we can help, whether you need help finding tenants, collecting rent, updating your rental units, or doing anything else. It’s worth exploring the options available.
For the best property management services in Houston or Auston, book a confidential consultation. You’ll see that a property manager like Green Residential is an investment in your success as a property manager. Our goal is to help make your property investment goals a success. Find out more today about property management in Houston or property management in Austin.