Multi-family properties are a good investment option in Visalia, as they offer a high occupancy rate and long-term profits. However, the one question that many multifamily property owners have is whether they should hire an on-site property manager or settle for off-site management.
While there is no hard and fast rule, based on our experience, you may consider hiring an on-site manager if you have over 16 units, who can be your representatives on the property. Alternatively, you can always hire a property management company to take care of your place for you, if you are not keen on hiring an on-site manager.
To know which option suits you best, here are a few advantages and disadvantages of having on-site property managers.
Advantages of Hiring an On-site Manager
Here are a few benefits of having an on-site manager if you have decided to hire one for your multi-family rental.
- Takes care of on-site activities
On-site managers are your eyes and ears at the property. They always look after the health and safety of your house and can quickly resolve any issues that may arise. Hiring them for your property can discourage burglars or criminals and prevent any illegal activities from taking place. Also, they can ensure that the tenants keep the premises clean and safe.
- Manages your tenants
On-site managers can be a mediator between you and your tenants. As they live on the property and are accessible 24×7, they can promptly address any emergency issues that tenants may face. As your representative, they can also help manage tenant disputes, coordinate rental showings, and take care of other tenant-related issues.
- Informs you about lease violations
On-site managers can immediately report tenant misbehavior, such as creating noise on the property or violating the rules mentioned in the lease agreement. They can let you know if the tenants have illegal pets, long-term guests, or if there are squatters in a vacant unit, and illegal vehicle parking. If required, they can take legal action against the tenant and also assist you with tenant evictions.
Disadvantages of Hiring an On-site Manager
From what we have seen of the Visalia rental market in the last 20 years, the biggest problem with hiring on-site property managers is that they lack experience, which can be risky. This leads to,
- Higher Costs
If you hire an on-site manager for your multi-family rental, you need to offer them lodging or accommodation to live. Besides, you also need to decide a certain amount of salary commensurate with the number of units and tenants they are managing plus the nature of work involved. You have to manage all these expenses over the long term. Considering that this is an investment, you need to make sure if it is worth all the extra cost.
- On-site managers often have too much power
Sometimes, property managers may misuse the rights you have given them. We have often seen some managers with bad attitudes providing terrible customer service and behaving rudely with tenants. Some common issues with bad on-site managers can be misplacing lease agreements, not taking their management duties seriously, or collecting extra money from tenants under false pretexts without your knowledge. Note that not all on-site managers are bad, but you need to be very careful while choosing one.
- Limited Experience
Over the course of our work, we have observed that not all on-site managers are experienced and knowledgeable about their work. They lack in-depth understanding of legal policies and management experience. In worst-case scenarios, this leads to implementation of laws without following standard procedures, which can result in expensive mistakes. In Visalia, speaking Spanish is essential to deal with tenants in a multi-family unit. If your on-site managers are not bilingual, they cannot effectively communicate with tenants on the property.
The Solution? A Hybrid Model
Managing multiple properties on your own is a momentous task but hiring an on-site manager is not the most palatable answer. The solution? Hiring a professional property management company that can look after your place without the disadvantages of on-site managers.
We at The Equity Group offer property management services, address tenants’ issues immediately, conduct timely inspections, collect rent and handle all the important things related to property management. Our centralized, automated and effective processes take property management to a whole new level in Visalia.
To know more, contact us at The Equity Group today.