In this blog, we want to look at the three reasons why people don’t hire professional management companies. By now, you know all the good reasons that explain why homeowners, investors and landlords hire professional property management companies. Let’s take a look at why people don’t hire a company and what you can do to change their minds.
1. Not Understanding What a Property Manager Does
Have you ever met a landlord who thinks that all property managers do is collect rent? People don’t trust what they don’t know, which is why landlords sometimes shy away from hiring a professional property manager. If they think collecting rent is all that is involved, most property owners will assume they can do the job themselves. You need to explain what other duties are involved on a daily basis and how those services are instrumental when managing a rental property. If you can demonstrate that your company isn’t only collecting rent, landlords and investors will come to realize that your services are valuable.
2. Landlords Think They’ll Save Money
Everyone wants a second income, and people who want to earn that income on a rental property often don’t understand that it can be risky if they don’t know what they’re doing. While managing an investment property might seem like a great idea, a single mistake can end up being costly enough that the landlord loses money and the property becomes a huge financial burden.
You need to explain that a professional property manager will protect landlords from these costly problems and can be a positive influence on money and income, rather than a drain. A good property manager maintains the health of a home, which helps in making the landlord money in the long run. In addition, most people don’t know that the fees you pay to a property management company are tax-deductible, while your own time spent working on a property is not; which leads to:
3. Managing Properties as a Hobby
Everyone wants and needs a hobby, and people who do not hire professional managers might think they can take care of their rental property like it’s a hobby. But unlike swimming or hiking, which consumes an hour or two per day, property management can be a full time job. Understanding that concept comes back to our first point, which is the need to explain what’s involved with managing a rental property. Sure, it’s easy to DIY when everything is going well, but the longer an amateur manages their own property, the more likely it is that things will go wrong.
When owners find you online or through referrals and your phones are ringing, pick up the phone and find out why they are calling and what they need. When they ask how much you cost or complain that you’re too expensive, mention the time and effort that they’ll end up saving, and how your expertise can actually make them more money in the long run, with less work on their part. Explain through video blogs, online ads, the phone and other methods so you can educate landlords on how professional property management is a worthwhile investment.
We share tips like this, and many more, in our eBook, The Art of Winning the Sale. Get your copy today!