Why I need a Property Manager?
Often friends and family ask why people would need a property manager if owners can do the management themselves especially for properties with not many units? My answer is usually a succinct “because it makes perfect sense”. Even in cases when property owners area able and willing to manage their own investment properties, it is financially and logistically wise to hire a competent property manager.
Investing in real estate, apart from one’s home, is a tremendous investment opportunity for several compelling financial reasons. Real estate historically is an investment vehicle that remains always relevant, valuable and important. The simple adage “everyone needs to live somewhere” is most certainly true. A property in a good location and in good condition is always a good investment that can provide rich income for years and capital gain potential. Furthermore, from a tax perspective, an investment property brings many advantages that must be leveraged and taken advantage of.
Canadians often complain that our neighbors south of the border receive many tax advantages such as the ability to write off property taxes and interest expenses on mortgages which present huge financial advantages. Despite most people’s misconceptions, these advantages certainly do exist for Canadian properties provided that the property is indeed an investment property and not one’s personal residence. One can write-off mortgage interest expenses, property taxes, repair and maintenance costs and certainly, property management costs.
For the large scope and amount of work that a property manager performs, it makes perfect sense to employ them. One must contemplate how much their comfort is worth. They must think what value does someone who manages potential headache (repair calls at any hour) bring? What value does a manager who oversees projects, tenant showings, rental board proceedings bring? The answer is “a lot of value”. Factor in the reduced stress and improved quality of life that a property manager presents and it is quickly clear that not having a property manager would be a severe hindrance to the investment and the owner’s quality of life.
When one factors in the added advantage and ability to deduct the expense from the propertie’s income at year-end, the decision to employ a manager is a no-brainer!
Consider property management, it may be the best decision you ever made regarding your property!