You’ve chosen your property, the renovation is complete, and you’re finally live on the platform! That’s a huge step, but the work isn’t over. Whether you’re preparing for your first or fiftieth scheduled move-in, you know it’s vital to manage your property well to see the benefits of the PadSplit model.
Many PadSplit Hosts choose to work with a property management company to handle the day-to-day operations of their PadSpliot property. Hiring a property manager for your PadSplit property has many advantages and disadvantages. Here’s what you should consider when deciding whether or not to hire a property manager.
What is a Property Manager?
A property manager is a person or company hired as a third party by a property owner to oversee and handle the daily operations of their real estate investment.
Most property managers will handle the day-to-day operations, including move-ins and move-outs, for property owners. PadSplit’s marketplace handles marketing, resident applications and screenings, and payments and collections. Ultimately it’s up to the property owner and manager to determine what falls into the scope of their work. Common property management responsibilities for PadSplit include:
- Scheduled property inspections
- Bill pay
- Monthly cleaning oversight
- Landscaping maintenance
- Pest control
- Member move-in assistance
- Room turns (move-out processing)
- General maintenance and repairs
- Monitor utility usage
- Additional preventative maintenance
While the PadSplit model is different from traditional rentals, many PadSplit Hosts choose to work with a property manager to streamline operations of their PadSplit. Here’s a breakdown of why Hosts decide to work with a property manager and the pros and cons of hiring one to run your PadSplit.
Why consider a Property Manager?
Roughly 70% of PadSplit properties use a professional property management company. Deciding if you should and when to hire a property manager will depend on various factors.
Here are a few questions to ask yourself:
- Do you have enough time to manage the property? If you find yourself juggling too many competing priorities, it may be time to bring on additional help. Providing prompt service to maintenance issues and Member concerns is an integral part of the PadSplit model and increased returns. Happy Members mean longer tenures and more money for you, after all.
- Does your current portfolio size warrant additional help? How many properties do you currently own and rent? If your workload for this number of properties is manageable and you don’t want to grow your portfolio, you may not want to bring on a property management company. However, if growing your real estate portfolio is a goal, it may be wise to consider ways to outsource.
- Do you live near your properties? If you’re located out of state or a long distance from your property, it may be beneficial to bring on a partner who can help with the day-to-day operations and be on-site when needed.
Depending on your answers to those questions, it may be time to consider hiring a property manager to take over some of the day-to-day operations of your property. Here are some pros and cons to consider when weighing the decisions.
Pros of Hiring a Property Manager
- More time and less stress: There’s no such thing as an off-day when managing a rental property on your own. While the PadSplit platform makes it easy to block move-in days for vacations or other commitments, you can’t plan for unexpected maintenance requests. Hiring a property manager will give you time back and mean you aren’t on-call 24/7, but it will also build in an added layer of privacy between you and your residents.
- Industry experience: Whether you’re a first-time investment property owner or a seasoned pro, it’s always helpful to have another expert in your corner. Hiring a property manager gives you access to their experience and network of vendors and contractors for addressing maintenance issues. Their network may also provide an additional discount due to the volume.
- Reduced Member turnover: When a property manager promptly addresses Member concerns and maintenance issues, it leads to a positive Member experience. When PadSplit Members are happy, they’ll choose to stay in your property longer. On the flip side, if a Member doesn’t feel their concerns are addressed promptly, they may decide to relocate to another PadSplit property.
- Scale faster: Did you know 70% of PadSplit Hosts become repeat Hosts? Once they see the returns, it becomes a no-brainer for them to continue to scale their portfolio and invest in the PadSplit model. With additional properties comes additional responsibilities. A property manager can help you grow and scale without straining your workload.
Cons of Hiring a Property Manager
- Expense: This is often the most significant obstacle property owners face when hiring a property manager. Most property management companies will charge a monthly fee, typically a percentage of your monthly rent. There may also be additional management fees such as setup fees, repair costs, or vacancy fees. Ask for a fee breakdown when interviewing potential property managers.
- Lack of owner involvement: Some owners want to know about every decision made regarding their property; others prefer to be hands-off. While a property manager will save you time by making decisions about your property, ensuring you’re aligned on the communication process for more significant issues or repairs is essential. Property managers likely won’t involve you for minor maintenance issues or smaller matters.
How to Find and Hire a Property Manager
Whether you’ve officially decided to bring on a property management company or are exploring options, the next step is to find and interview prospective property managers.
Not sure how to find a great Property Manager in your area? Start with personal referrals or tap into the PadSplit Vendor Network. Ask fellow real estate investors (ideally other fellow PadSplit Hosts) if they property management companies they’d recommend.
Want a property management company familiar with the PadSplit model? Log into your PadSplit Host account, and search based on vendor type and location. All vendors in the PadSplit Vendor Network have spoken with a team member and are familiar with our co-living model. You can reach out and schedule initial phone calls to learn more about their offerings and availability.
We recommend interviewing at least three different vendors before making a final decision.
Final Thoughts on Property Managers
There isn’t a one-size-fits-all answer for when it’s best to hire a Property Manager to help you manage your PadSplit rental property. Bringing someone onto your rental property management team has advantages and disadvantages, and it’s important to weigh the pros and cons against your long-term goals.
Ultimately, you know what your needs are and the amount of effort you want to put into managing the day-to-day of your PadSplit and can weigh the disadvantages, like costs, against that.
Header Photo by Towfiqu barbhuiya on Unsplash
