Real estate is a savvy way to invest your money. As the population grows, the demand for homes and apartments continues to grow, so you’ll never have a lack of customers. According to the Canadian Rental Housing Index, there are over 406,200 renter households in Alberta and over 4 million in Canada at the moment. The number of renter households is projected to rise as more immigrants come into the country and the population increases.
Now, when it comes to investing in real estate, buying the property is just the initial part. You need to be prepared to manage it along with the tenants. After all, rental properties don’t manage themselves. Managing a property requires a lot of time and effort, both of which most investors don’t have.
Hiring a property management firm is your best bet, but you’ve probably heard the rumours surrounding the business. We are here to bust the most common myths about property management companies, so you can take advantage of the service for your rental properties.
Myth #1: The Fees will Add Up
The number one myth you’ll come across about property management is that it will cost you an arm and leg. Every property owner is looking to make the most out of their property. They think that by paying a firm to manage the property, they either give up a huge chunk of the revenue or even worse go into a loss.
Well, you don’t necessarily have to give a huge chunk of the revenue to a property manager. If you are working with a licensed property management, you will have a signed agreement in place.
Will they charge you a fee? Yes.
Will the fee be based on the rental revenue? Yes.
Your property management company is hired to bring peace of mind. The companies experience, knowledge of the marketplace and experienced team is worth the fee. (TIP: Speak with your accountant, this expense is probably a deductible expense). The property management company should also be able to support you in achieving cost deductions based on their purchasing power with the goal to improve your bottom line.
Working with the right company will end up saving you a lot of time and money. So much so, that the investment will be second to your decision to buy a rental property.
Myth #2: I Could Lose Control Over my Property
It’s common for property owners to find themselves hesitant to hand over management duties because they are scared they could lose their property to a firm. However, that is not the case.
Once you choose a firm, you sign a contract with them. The contact will outline each persons duties and obligations.
Myth #3: I Can Manage the Property Myself
It’s typical for first-time property owners to start off thinking they can easily manage the property. They take the task on themselves, thinking they will end up saving a lot of money. While you might … there are many responsibilities that come with managing a property. These include:
- Marketing the property
- Responding to emergencies in the middle of the night
- Screening potential renters
- Rent collection
- Repairing the property when needed
- Routine maintenance
- Dealing with tenants’ issues
- Eviction of tenants due to non-payment
- … the list goes on!
Maintenance and responsive communication is a major paint point for tenants. Renters want a well-run property. Hiring a reputable property management firm covers all your pain points and you have a team of people working around the clock to deal with these types of things. As highlighted above, a property management team is armed with proactive and responses services, marketing knowledge and experience necessary.
Hire a Property Management Company Today!
Property management companies make your life easier by handling all the responsibilities of renting out a property. You won’t have to deal with the headache of handling unexpected tenant issues and routine maintenance. All that would be taken care of for you, making your life remarkably less stressful.
If you are looking to reap the benefits of using a property manager and profit from the experience of a licensed property management company, contact Emerald Management and Realty at 403-237-8600 or inquire online.
Emerald Management & Realty Ltd. has served the Calgary & Area community, managing properties for close to 50 years, and have won countless awards in the process. Contact us today for the best property management and peace of mind.