If you’re like many investors – or like many “accidental landlords” – you’re wondering whether it’s worthwhile to hire a property manager in Boston. There’s no one-size-fits-all answer to that question, so the best we can do is to tell you that it depends on your goals, how much time and energy you want to commit to your property, and whether you want to take a more hands-on approach.
This guide will help you decide whether hiring a property manager is worth it in your situation.
Is it Worthwhile to Hire a Property Manager?
Property management can quickly become a full-time job, particularly if you own multiple properties. If you have the time, energy and resources to manage a home that you don’t live in, then it’s a great idea to do it yourself. You’ll be responsible for:
- Finding tenants
- Doing background checks on prospective tenants
- Screening prospective tenants to make sure they’re a good fit for your property
- Lease negotiation and enforcement
- Scheduling repair and maintenance requests
- Scheduling lawn care services
- Making property bill payments, such as HOA, water and sewer, and others
- Holding security deposits in escrow and returning them (less damages) when a tenant moves out
- Handling tenant calls, emails and text messages
- Move-out inspections
- Going to housing court if it becomes necessary
If that seems like a little too much work – or more than you want to do because you have other obligations – you’re not alone. A huge number of property owners choose to work with a Boston property management company to alleviate these (and other) headaches.
How Much Does it Cost to Hire a Property Manager?
A big factor in whether hiring a property manager is worthwhile: Your profits. If you can afford to pay a property manager and still bring in a profit from monthly rent, it may make sense – but if you’re under-charging for rent, or if your mortgage is exceptionally high and you can’t justify charging a tenant an additional sum, you may want to manage your own property.
So how much does it cost to hire a property manager? It depends on the type of property you have. Many rental properties cost between 5 percent and 6.5 percent of the gross monthly rent. If you’re charging a tenant $1,000 per month, you’ll pay less than you would if you’re charging a tenant $3,000 per month.
You don’t write your property manager a check each month, though. Instead, your property manager will deduct his or her fee from the rents collected. Then, you’ll receive a check for the remaining amount. At the end of the year, you’ll receive all the appropriate tax forms from your property manager so you don’t have to worry about sending a 1099 or anything else.
When You Should Consider Hiring a Property Manager
You should consider hiring a property manager if you:
- Have multiple properties or rental units
- Don’t want to spend your valuable time dealing with tenant requests, collecting rent, or screening new tenants
- Would rather not find vendors and deal with repair or maintenance requests
- Want to avoid legal hassles that can be associated with fair housing laws
- Don’t want to collect rent, late fees and other payments yourself
Hiring a property manager is the right choice for the majority of owners because it simplifies the process. For a small monthly fee, you can bring in the profits from your rental property without dealing with any of the headaches.
Do You Need to Talk to a Property Manager?
We’re here to help you every step of the way – all you need to do is sit back and collect your rent payments.
Call us at 617-262-3075 or fill out the form below now to find out how we can take all the stress out of renting out a property in Boston. We’ll take it from here!