Do you need a property manager?

As a real estate salesperson and the owner of a Saint John property management company, I see many people who buy rental properties and don't think they need a property manager (in most cases they own a small building or a single family home they rent out). Little do they know it's not only about collecting your rent cheque every month.

Here are some things to consider when asking yourself "Do I need a property manager"?

Residential Tenancies Act

First and for most is the laws governing rental units. Here in New Brunswick Canada it's called the Residential Tenancies act. It outlines the rights a tenant has, as well as the rights of the landlord. If you aren't familiar with them, you need to get familiar or find a manager that is - otherwise you could end up in some trouble with the law.

On call 24/7 365 day's a year?

As a landlord you need to be on call 24 hours a day, 7 days a week. Not only do you need to be on call, but you need to be ready to get to your property in a hurry in the event of an emergency. Many landlord's tell me they are available 24/7 but they look a little puzzled when I ask them: "You're out on a Saturday night with friends and family, and you've had a couple glasses of wine. You're tenant calls and the toilet is flooding. What do you do?".

At the end of the day, you need someone on call and available to take care of these problems should they arise.

My building is brand new, we wont have any problems.

It doesn't matter how new your building is. Bad things happen to new buildings too! Toilets get backed up, leaks happen, there isn't anything we can do about it except be ready when it happens.

My tenants are great executive clients, there wont be any problems.

That's great, I'm glad to hear you've got great tenants. You can have a beautiful property, but it doesn't mean anything without the good tenants. The problem is that accidents happen with good tenants too (e.g. the bottle of bleach they just picked up at the store has a faulty cover, and gets spilled all over the floor - it's not because they are bad people). For this reason you must always collect a security deposit.

You have executive tenants, and they are looking for executive service. If they have a problem, they want prompt and professional service whether its 2 in the afternoon or 2 in the morning.

Who's to blame, and who's going to pay for that?

If you make a mistake, you're going to pay for it. If your property manager makes a mistake, they will be paying for it (or their insurance will).

The bottom line is, property managers have experience and knowledge in what they do (after all, that's how they make a living. If they weren't good at it, they wouldn't be doing it for very long). They have systems, and accountability. Before you say no to a property manager, sit down and talk to one (or two) and find out what they can do for you.

If you're purchasing rental property in the Greater Saint John Area give Harrity Real Estate Services a call, and we will set up a free initial consultation. If you already own rental property, give us a call and we will give you a free initial consultation to discuess how we can improve your investment, and give you the time for what matters most to you.

Thanks for reading.

Luther Harrity

Saint John Real Estate & Property Management Services