Ali Ata on How to Decide Whether to Hire a Property Manager or Not

Choosing whether to hire a property manager is not something you can take lightly. Ali Ata emphasizes the importance of reviewing your portfolio and redoing the math.

What is a Property Manager

A property manager will help you collect rent, schedule maintenance, evict tenants, market to prospects, and communicate with existing clients. They basically do everything a landlord does. Ali Ata finds that property managers are perfect for investors who:

● Live far away from their properties. If you want to oversee a rental property, you have to be available every day and be able to respond in case of emergencies.

● Have multiple properties for lease. Ali Ata shares that you can’t really manage more than a few units at once, especially if they’re from different locations.

● Are inexperienced in acting as a landlord. Let’s face it, being a landlord is difficult. It’s an entirely different matter from investing.

How Much Does a Property Manager Charge

Most professionals take around 8% to 12% of your monthly income. That means that for every $100,000 you make, your property manager is entitled to around $8,000 to $12,000.

Meanwhile, some property management companies charge a fixed rate. For example, for every x number of rooms, you are obligated to shell out $100 every month, regardless of how much your income is.

Do they have commissions? Most of the time, yes. For example, if they are able to find a tenant for your property, expect to pay around half of the first month’s rent.

Bottom Line

Overall, Ali Ata shares that property managers are for real estate investors who have dozens and dozens of rental properties, rooms, and condominium units. After all, it’s virtually impossible for one person to even keep track of all those tenants. So either way, you’ll need the extra help.

If you still have doubts about hiring a property manager, we suggest recalculating your profits. Deduct the property management fees mentioned above from your current income and see how far the ROI will be pushed back. In most cases, you can offset the loss by using the extra time to invest in other properties.