Chicago is a thriving market for rental real estate investors. Roughly 55% of households are renting, meaning there's usually a good demand for rental units.
You've made a great decision to invest in Chicago, but that's only half the job. To be a successful investor, you must also know how to manage a rental property. If you're a first-time owner or don't have enough time to look after your properties, you might run into various challenges.
Luckily, you can always outsource the job to a rental property manager. In this article, we're telling you how to know it's time to make the call and hand over your property management duties.
Let's get started:
1. You Don't Live in/Near Chicago
It's not a legal requirement for property owners to live near their property. It's, however, good practice for owners who are self-managing their units.
The logic behind being closer to your rental property is simple. You'll be in a better position to execute some management tasks that require proximity, such as emergency repairs and showing the unit to prospective renters.
As such, if you're an out-of-town landlord and you're having to make regular trips to the property, hiring a rental property management firm is a smart move. Ensure the company is based in Chicago and serves local property owners.
2. You're Not Earning a Steady Rental Income
Rental real estate is a good source of steady income, as long as the property is occupied throughout.
If your Chicago rental property isn't bringing in a steady income, don't wait too long to act. There are a number of reasons the income isn't steady, from having tenants who don't pay rent on time to low occupancy rates.
Whatever it is, it shows that you are not able to address it effectively. A property manager has the skills to find high-quality tenants who will pay rent on time, as well as keep the rental occupied.
3. You're Dealing with a Tenant Complaint/Lawsuit
A lawsuit is the last thing you can expect to face as a landlord. In any case, you're the one who's most likely to sue a tenant during eviction.
Although uncommon, it's possible for a renter to sue the landlord. If a rental applicant has reason to believe you discriminated against them during a tenant screening, for instance, they may sue you for violating fair housing laws.
Lawsuits, merited or not, are costly and can harm your reputation. You don't want to spend your hard-earned money hiring attorneys to defend you in court.
If you've faced tenant claims or lawsuits in the recent past, it's a sign you're exposing yourself to unnecessary liabilities. Hire a property manager and tenant complaints and lawsuits will become a thing of the past.
Be a Successful Investor with a Rental Property Manager
Hiring a rental property manager is solely your decision as a property owner. Self-managing has its benefits, and many investors have been successful at it. However, it's not for everyone. You must be able to recognize the signs that you need to outsource property management.
At GC Realty & Development, our goal is to provide exceptional property management solutions. If you're thinking of hiring a Chicago property manager, contact our team.
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