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.
If you have any questions about online marketing for property managers, please contact us at Fourandhalf, and we’d be happy to tell you more.
We share tips like this, and many more, in our eBook, The Art of Winning the Sale. Get your copy today!
If I owned properties, I would for sure see about hiring a property manager. Like you said, I agree that people don’t all know what they do. They don’t just collect the rent but also help with taking care of the property and making upgrades too. Just do a bit of research before you go out and hire one.
A property manager – who handles the business side of an investment property for the owner.
I love the way you show all the post. Anyway good post.Thumbs up !!!!
This is a great post and I completely agree with your reasons landlords are hesitant to hire property management companies. I think educating property owners about what quality property management companies do is definitely a good start. And, as for saving money, you are right. One mistake could become very costly to a landlord. For example, many property management companies deal with legal issues that pop up during a tenancy. Court fees, attorney’s fees, and settlements can prove costly less you have a property management company helping you. And lastly, many landlords have no idea how much time and effort is really required for managing a property, even if it’s only one. Thanks for sharing your insight. I hope this lets property owners see the value a good property management company can afford them.
Hiring a professional property agent is the way to go in the real estate business.I think it will saves a lot of time like checking the condition of the house.But I think also great research should be done when looking for a property agent .This is an insightful piece.
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Thank you for the information and exactly the same reasons should be to not hire a property manager by landlords but they don’t know that property manager will take care of their property professionally.
A Professional Property Manager will always make sure that rental properties are looked after – with proper maintenance and even inspections. I also do agree, that property managers don’t just collect rental payments. It is more than that and that is what makes hiring them a wise choice for rental property owners.