Investing in residential rental property entails a number of crucial choices. The most important choice at the top of the list is probably how you’ll handle the day-to-day management of your property. Should you self-manage your rental property, or is hiring a property manager the wiser move? Even though every circumstance is unique, the decision you make on this matter could have an impact on everything from your leisure time to your bottom line. Let’s dissect it, then.
Why Property Owners Choose Self-Management
Being hands-on appeals to a lot of rental property owners. This approach might be suitable for some people for a number of reasons. For instance, when you self-manage a rental property, you maintain complete control of every part of the process: tenant screening, rent collection, repairs, and lease renewals, to name a few. In addition, some owners enjoy building direct relationships with tenants and take pride in personally maintaining their investment.
Doing your own maintenance and management could be beneficial for you if you have a lot of free time and strong handyman skills. Some property owners also think they may save money by skipping property management fees, which can occasionally play a big role in their choice.
If you live close to your rental, have the time and energy to respond to maintenance calls and inspections, and are familiar with the specifics of local landlord-tenant laws, rental property self-management can be a logistical success. Just keep in mind that managing a property is more than gathering rent checks. It can be difficult to balance.
Managing Investment Properties: Common Challenges
Although it may seem satisfying to manage your properties yourself, there are actual difficulties involved. For instance, managing investment properties alone indicates you’re the one on call, taking late-night calls about leaks or lockouts. In addition, you have to enforce lease agreements, stay current on changes in laws and regulations, and follow fair housing rules.
Contrary to common opinion, a lot of first-time landlords find that being a property manager is a demanding job in its own right. If you have trouble finding time to manage it properly, or if you make an error, like mismanagement of a security deposit or not following eviction laws appropriately, it can cost you much more than you’d ever pay in property management fees. Therefore, although there are reasons to manage your own properties, there are also plenty of reasons why you may choose not to.
Benefits of Hiring a Property Manager
On the other hand, think about the benefits of hiring a property manager. To begin with, when you work with 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 respond to emergency calls and monitor tenant relations. They stay up to date on rental laws, so you stay compliant and avoid legal headaches.
A competent property manager also keeps your units occupied longer by maintaining great tenants. They are skilled at gathering information, pricing your rental competitively, and keeping maintenance issues from transforming into major issues. Several rental property owners believe that paying property management fees is worth it for the peace of mind alone.
Understanding Property Management Fees
When it comes to fees, when working with a property manager, it’s critical to comprehend what to prepare for. Most property managers take a percentage of the monthly rent, in addition to potential leasing or placement fees. When assessing these expenses, keep in mind that you are ultimately investing in your time, resident satisfaction, and the long-term value of your property.
Well-managed properties typically have fewer vacancies and happier tenants, which indicates 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. Looking at it this way, you can save money, time, and hassle over the life of your investment by hiring a quality property manager.
Finding the Right Management Balance
At the end of the day, the question of whether you should be hands-on or hands-off with your rental property has no right or wrong answer. While some owners enjoy self-managing their rental property, others benefit from the freedom and confidence that comes with employing a qualified property manager.
If you’re prepared to discover how professional management could make your life easier, speak with Real Property Management Lakeside today. We’re here to help you protect your investment in Winter Haven and increase your rental revenue, all without adding to your stress and trouble. Contact us online or call 863-877-1078.
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