Buying a second home or investment property? Read this article for 5 reasons you need a property manager for your Madrid real estate investment.
It’s tempting to want to save money by managing your own property, but that short-sightedness can easily end up costing you money in the long run. Read this article for 5 reasons you need a property manager for your real estate investment.
1-It will save you time
This is the number one reason you need a property manager for your Madrid real estate investment. Most people have no idea how much work it is to manage a property on a daily basis. Doing it for a couple weeks, or even months, is manageable but having to do it for months on end is a big commitment. If your rental property is usually occupied, which it needs to be for it to be profitable, you not only have to clean it regularly and constantly wash the linens, but you are always at the beck and call of the people renting your place. Imagine you are out, having dinner with friends and something in your rental property breaks. Or perhaps the wifi goes out. Regardless of what the issue is, you will have to stop what you are doing, go over there and resolve the problem. That gets old very quickly.
2-You can live in another location
Hiring a property manager gives you the luxury of purchasing a second home in a different city or country. If you are buying a vacation home, hiring a property manager will allow you to monetize your investment when you are not using the property. If you count on investment properties for your income, buying a property in a different city or country will allow you to diversify your investment portfolio. In both of these scenarios, you need to hire someone to manage your investment.
3-You can achieve better pricing
Professional property managers typically manage a number of properties in the same location. This means they understand the seasonality in the rental market. If you put them completely in charge of managing your property, they can raise the prices to take advantage of holiday surge pricing, local conventions and other events that allow you to earn higher rental returns on your property.
4-You can get better reviews on home sharing sites
Reviews on home sharing sites are extremely important. And there are myriad things that can go wrong when people are staying in a house in an unfamiliar country. The last thing you need, if you manage your property yourself, is to get a negative review if your tenants can’t figure out how to open the door in your house or can’t figure out how to use the stove, see a mouse or have some other issue. The reviews will be even worse if you can’t get to the property in a timely fashion to resolve the issue. This will translate into bad reviews, which will negatively impact your ability to fetch premium pricing for your property.
5-You don’t speak the local language
In many countries, much of the local population doesn’t speak English. This is particularly true in Spain. Simple tasks like upgrading the wifi, finding a painter or repair person can be extremely challenging if you don’t speak the local language. Better to hire a property manager, that speaks the local language, to manage your property.
