Dangers of not hiring a property manager. - purerealestategroup

Dangers of not hiring a property manager.

In this video, Russell Peter, discusses the importance of having a property manager to manage your property. Some owners tend to self-manage their properties to save on management fees, which can range from $1800 to $3000 per year. However, self-management can lead to severe and expensive consequences, which Russell walks us through on a recent management take over.

In this video, the owners had previously self-managed their property for the last five years and saved approximately $10,000 in management fees. However, during these five years, the owner did not conduct any routine inspections, which led to significant damages to the property. The tenant also stopped paying rent, which prompted Russell to get involved in moving the tenant out and restoring the property to its original condition. Russell shows us the damages done to the property, which could have been identified early on if the property was being managed by a professional. The kitchen needs to be gutted or cleaned, the living area requires a total repaint, and all the lights are busted. The doors are also missing, and the outside of the property needs to be fixed, which is estimated to cost between $3,000 to $5,000. The owner did not have insurance, so all the expenses are out of pocket, leading to a loss of approximately $40,000 to $50,000. Russell urges property owners to avoid such situations and reach out to professional property managers if they haven’t conducted routine inspections in over 12 months or if they are unsure of what is going on with their property. He emphasises the importance of taking advantage of the current strong rental market by moving a less than ideal tenants on and not self-managing your property. By getting professional help, you can avoid making costly mistakes and losing money in the long run. In conclusion, this video highlights the importance of having a property manager and conducting routine inspections to avoid expensive damages and losses.

We’d encourage owners to seek professional help when needed and take advantage of the current market conditions to make the most out of their investments.