Investing in residential rental property demands making a lot of important choices. How you’ll handle the day-to-day management of your property on a daily basis is probably the most critical decision you’ll have to make. Should you self-manage your rental property, or is hiring a property manager the better approach? While each case is different, the decision you make on this matter could affect other aspects of your life, such as your free time and your bottom line. Yes, I think we should dissect it.
Why Property Owners Choose Self-Management
Being hands-on in the everyday operations of a rental property is enticing to some rental property owners. There are several reasons why this approach might be suitable for some. For example, when you self-manage a rental property, you stay in complete control of every part of the process: tenant screening, rent collection, repairs, lease renewals, and so on. Additionally, they enjoy being hands-on with their property and appreciate building direct relationships with tenants.
Dealing with your own maintenance and management could be a great fit if you have strong handyman skills and have plenty of free time. Property management fees aren’t always needed, but for some property owners, the belief that they can cut costs is a major consideration.
Being aware of the ins and outs of local landlord-tenant laws, residing close to your rental, and having the time and energy to deal with maintenance calls and inspections are all logistical considerations that might make self-management of rental property a prudent option. Just remember: managing a property is more than acquiring rent checks. It can be a lot to manage.
Managing Investment Properties: Common Challenges
Managing your properties yourself might sound attractive, but it’s not without its problems. Taking late-night calls about leaks or lockouts is just one instance of what happens when you manage investment properties by yourself. Implementation of lease agreements, compliance with fair housing rules, and keeping informed about changes in laws and regulations are also your duties.
Contrary to common belief, several first-time landlords know that being a property manager is a demanding job in its own right. If you don’t have time to manage it properly, or if you make a mistake, like mistreating a security deposit or not following eviction laws correctly, it can cost you much more than you’d ever pay in property management fees. You can choose to manage your own properties if you so like, but there are several reasons why you may choose not to.
Benefits of Hiring a Property Manager
Conversely, dwell on the benefits of hiring a property manager. To begin with, when you hire a quality property management company, you get a team of professionals who handle everything from marketing your property and screening tenants to collecting rent and managing repairs. They manage emergency calls and promote tenant relations. They stay updated on rental laws, so you stay compliant and avoid legal headaches.
A great property manager also keeps your units occupied longer by attracting good tenants. They understand how to collect data, price your rental competitively, and keep maintenance issues from transforming into bigger problems. Numerous rental property owners observe that paying property management fees is worth it for the mental relief it gives.
Understanding Property Management Fees
In terms of dues, when working with a property manager, you have to be aware of what to anticipate. Most property managers charge a percentage of the monthly rent, along with possible leasing or placement fees. When contemplating these costs, remember that in the long term, you’re investing in your time, resident satisfaction, and the long-term value of your property.
Well-managed properties tend to have fewer vacancies and happier tenants, which represents less turnover and steadier income for you. A well-managed property should also be proactively maintained, which helps further reduce unexpected expenses and keep expenses low. Considering it this way, hiring a quality property manager can end up saving you money, time, and effort over the life of your investment.
Finding the Right Management Balance
At the end of the day, there’s no right or wrong answer to whether you should be hands-on or hands-off with your rental property. The freedom and confidence that comes with hiring a competent property manager is enticing to some owners, while self-managing their rental property suits others.
If you want to witness how professional management could make your life relaxed, get in touch with Real Property Management Instant Equity (SW Michigan) right away. We’re here to help you protect your investment in St. Joseph and improve your rental income, with no further effort on your part. Contact us online or call 269-210-3771.
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