A property manager is an individual or company that is hired to oversee the day-to-day operations of a unit of real estate. Property owners and real estate investors typically hire property managers when they are unwilling or unable to manage the properties themselves.
The cost of employing a property manager is often tax-deductible against the income generated by the property. Apartment complexes, retail malls, and business offices are common types of commercial property that are run by property managers.
A property manager is an individual or other entity that is hired by a property owner for the purposes of overseeing and managing daily operations of the property or properties.
The property manager acts on behalf of the owner to preserve the value of the property while generating income.
As a qualified business expense, hiring a property manager can be tax-deductible for owners of investment properties.
Pros and Cons of Hiring a Property Manager
The obvious advantage to hiring a property manager is that it removes the need for the owner to be nearby and actively managing the property. This allows a real estate investor to focus on investing in quality properties rather than managing the portfolio of properties currently owned. The downside is that the level of attention and service given to the tenants—the ultimate source of income—may not be as high as that from the landlord working on their personal investment.
This concern about cost is a feeling that real estate investors need to get over if they intend to scale up their holdings. Large real estate investors depend on property managers and usually work with a professional property management company rather than making any hands-on efforts.