Multi-family rental units can be complicated to manage on your own and that’s why most landlords choose to work with property managers to operate on their behalf with these types of real estate. The first question to ask yourself is whether to work with on-site or off-site managers. In this week’s article, we break down the difference between these two managing styles and why we feel that off-site offers the best bang for your buck.
What’s the Difference?
- On-Site: This is a property manager who either lives on the property itself or very near to it. They are often the owner’s employee, and as such you are responsible for paying their salary, benefits, and other employer responsibilities.
- Off-Site: Typically, these are whole companies that are contracted to your investment property. The staff does not live on the premises but rather works out of a local office.
What happens when your on-site property manager gets sick or goes on vacation? It’s unreasonable to assume that any person will be willing and able to perform their job 365 days a year. With a property management company, time off can be covered by other staff. Precise and detailed record-keeping ensures that duties are passed off and resumed smoothly.
If you’re looking to build your portfolio, as most real estate investors are, you need a system that can be easily scaled up as growth occurs. A single person can only run one property at a time if you require efficiency. A company can provide one point of contact for as many properties as you own, and with great consistency between each.
Trusted Vendor Relations
Renovations, repairs, and legal proceedings all require relationships with third-party vendors. An off-site company will have their own repository of vendors whom they have worked with before so that you don’t have to scour the internet. This tends to keep costs manageable and projects professional.
On-site property managers may perform interviews with potential renters, but many property management companies are able to take the screening process to the next level. Through references and credit checks, they can use their expertise to determine if a tenant is a high risk or not, saving you time, money, and stress in the long run.
The decision to work with an on-site or off-site property manager is unique to each owner. It fully depends on their investment goals and their needs. If you’re looking to work with a reputable off-site property management company in Calgary, we would love to speak with you! Send us a message or give us a call today!