As someone who has recently become a commercial property owner, you may ask yourself, is it worth having a property manager?
Who will find you new tenants when yours move out? Who will handle complaints about a store’s mechanical operations that need tending to right away? Who will handle tenants who do not pay rent on time?
You, the commercial property owner, could handle all of these things yourself, of course. That is assuming that you live a reasonable distance from your rental property and actually want to take on the responsibility. But, what if you live in another province? What if you don’t like dealing with the confrontation of a non-paying tenant?
What if you simply don’t have the time or energy to handle the responsibility of property management?
If you don’t have the time, energy or ability to manage your property, you may very well agree that you need to hire a property manager to oversee and handle day-to-day operations. However, if the cost of hiring a property manager is holding you back—don’t let it.
Is It Worth Having a Property Manager? I Heard It’s Expensive!
When pondering the question, “is it worth having a property manager?”, the cost of hiring someone to take on this role is taken into consideration (which is completely understandable).
In the grand scheme of things, hiring a property manager is not too expensive when you compare the amount of everyday and monthly tasks they handle for you; they do a lot.
A property manager typically charges a flat fee of 5% of the rent you charge. So for example, if you charge your tenant $3000 per month in rent, then a property manager will typically charge you $150 per month for their services. They collect the rent, take out their fee, and pass along the remainder to you. This is also after paying any maintenance and repair costs.
If you’re not yet convinced that hiring a property manager is worth it, keep reading.
Reasons to Hire a Property Manager
When our clients get asked, “is it worth having a property manager?”, the answer is a resounding “YES!”
Hiring an experienced property management company will save your sanity and allow you to worry less about your property and more about your 9-5 job any other obligations you may have.
Below are just some of the reasons why hiring a property manager might be a great choice for you and your commercial rental properties.
Owning Commercial Property in a Different City
Owners who have purchased properties in a different city or even out of province have no other option but to hire a property manager. Buying and owning a property remotely is easy, but managing and maintaining the property is almost impossible because of the commute, especially in case of longer distances.
Property management services will get paid to do the job for the owner without making them feeling worried about their property. So, that’s one case when it’s definitely worth the money to hire professional services.
Owning Multiple Properties
Another case in which it is worth hiring professional management is when a property owner has ownership of multiple investment properties. From a real estate investor’s point of view, it is crucially important to be able to buy and own several income properties, which requires lots of time and energy. Thus, if you’ve already reached that point in your real estate investing business, you will need to use a property manager. The cost will be covered from the opportunity (in terms of time) to buy yet another property.
Not Cut Out for Management—And That’s Okay
Some real estate investors purchase properties, but they are not fond of the frameworks of managing that investment. Management of properties is a day-to-day operation that could have you deal with tenants, real estate agents, people who frequent commercial properties, potential buyers, and more. An owner who wants to avoid all this hassle for an extra cost should hire a property manager that will take care of all these tasks to the highest level.
The managerial tasks that project managers face come naturally to them and they can perform them on multiple properties with ease. For traditional property owners, whether or not they invest in property management depends on their ability to do a similar or better job than the experts.
TAFCO Realty—Your Premier Kelowna Property Management Company
So, it is worth having a property manager? If you’re still unsure, speak to one of our professionals at TAFCO Realty. We are a local company that understands the unique needs of commercial properties in the Okanagan. With decades of experience, we are committed to exceeding the expectations of our clients.