Posted April 20, 2022 | by Tricia LeDreff-Kerwin
5 Reasons to Hire A Property Management Company in Toronto
When you decided to invest in your first rental property, what was the reason? Most people have the desire to earn extra income while leveraging their time. As much as managing a rental property can bring you both of those things, it can also cost you more effort, money and time than you expect without proper preparation.
Whether you’re new to real estate investing with only one property, or you’ve been at it for a few years and are starting to expand, here are five reasons why hiring a property management company might be an investment you’re ready to make.
(1) The Legal Stuff
We wish it were as easy as posting an item on Facebook Marketplace, scheduling a meetup, and exchanging payments, but that’s not the case. Renting out living space to someone else has several legal requirements that might be more complex than the average person would assume.
Learning the ins and outs of the Landlord and Tenant Board (LTB), legal documents, and building code regulations isn’t impossible, but it can take a big chunk of your time. Knowing the correct LTB form to use for each situation is critical. If you’ve already been renting out your property for some time, you’ve probably come across a few of these legalities and felt underprepared.
A great property management company often partners with an excellent legal team that is well-versed in real estate laws and regulations. When something comes up, you don’t have to panic and worry about doing the wrong thing because they take care of it all, including investigating the issue, mediating with the tenants, and balancing out all associated fees.
(2) Choosing The Right Resident
We aren’t saying that there is ever a ‘wrong’ tenant – Everyone needs a place to live. We are saying that there are better-suited tenants for your rental, in your location, with your amenities, creating a happier resident and an even happier property owner.
In today’s market, it’s very likely to get an abundance of applicants for every rental, but how do you know who to choose? Is it enough to only consider someone’s salary as an indicator? The ‘wrong’ tenant could end up costing you thousands of dollars and hours of your time.
A great property management company will meet with and screen tenants for you to find someone who will be a good fit for your rental based on their needs, and of course, yours.
Do you know what to do when your tenant gives notice to end their tenancy? Aside from arranging any maintenance and clean-up after they’re gone, you get to start looking for someone new to occupy the unit. Ideally, this is done quickly to avoid the space sitting as an empty liability.
(3) Marketing Your Property for the Right Price
Anyone can put a listing on Kijiji, but adding in carefully crafted text to attract the ‘right’ tenant paired with the credibility of a well-known, professional brand with more exposure is going to give you the results you’re looking for when it comes to applicants. The renters of today are expecting an Airbnb-Like experience when they search for a property. A good property manager will always make sure your property is marketed with premium content and on a great listing page.
A great property management company will often partner with a team of skilled marketers to help sell your unit and get the word out there to avoid an extended vacancy. Effective advertising will reach your ideal audience and provide a solution to their problems, questions, or concerns.
(4) Caring for Your Property
Property maintenance in itself is reason enough for most people to hire a property management company for their residential units. Unfortunately, things break and accidents happen, sometimes, more often than not, depending on your tenants or property itself. Unless you’re widely versed in the trades and like to spend your free time on your hands and knees with a flashlight, leaving repairs and maintenance to someone else probably sounds appealing.
It’s unrealistic to assume that even your favourite tenants won’t leave your unit with damages every once in a while. If not from accidents or inconsideration, then just from ordinary everyday wear and tear.
A great property management company will have professional community partners on board to take care of any repairs, inspections, or maintenance needed to keep the property in good working order, to meet legal requirements, and keep the space comfortable for your tenants.
On top of their current career, most people invest in rental properties to add another income stream to their lives without trading more of their time. However, from our experience, when this is done without the proper support, it can cost the homeowner a lot more time than what it’s worth.
Being a landlord is a full-time job on its own, and if you’re looking to save time and make more money in the long term, you’re going to want to have someone you trust to take care of all the back-end stuff. Get back to your family, your goals, your adventure and your life.
A great property management company takes the guesswork out of property management by handling the challenges that come with it as if it were a property of their own. It might seem sensible to manage your property yourself if you live nearby and are handy with a wrench, but you’re missing out on the substantial financial reward it can bring by getting stuck in hours of added work every month.
Hiring a property management company is an important decision to make, but with these considerations, you can determine if it is the right fit for you and your investment goals. If you are interested in learning more about how a property manager can help you save time, make more money, and have more peace of mind, schedule a discovery call with one of our team members, we can’t wait to meet you!
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April 20, 2022 3:53 pm