Hiring a Property Manager vs. Self-Managing: What’s Better?

Are you a new investor looking forward to enjoying some consistent income from real estate? Without a doubt, this real estate provides investors with plenty of opportunities. On the other hand, you must also factor in the obligations and efforts that come with being a landlord.

Investors have the option of managing their own rental properties or contracting out these tasks to a professional property manager. Many landlords have had satisfaction in self-managing their rental homes, however, without the right skills and resources, this task can quickly become overwhelming.

Here is a look at the different property management tasks that are associated with operating rental to help investors decide between self-management or partnering with a property management company.

Property Maintenance and Inspections

Taking care of both standard and urgent repairs is part of rental property responsibilities. Rental homes demand more effort from the owner or management to maintain because tenants cause more wear and tear on a property than homeowners.

In order to ensure your property runs smoothly, you must perform seasonal and routine maintenance. Additionally, you must attend to any urgent maintenance requests from your renters promptly. Your property’s value will be greatly improved by effective maintenance management.

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Filling Vacancies

It's imperative to swiftly find the next qualified renter when a property investment is unoccupied or vacancy is imminent. Effective managers regularly promote their properties to generate a pool of potential customers. If you want to avoid unreliable tenants, you should also conduct background checks on every prospective tenant. Consider the following:

Marketing

Marketing available units go beyond simply posting an ad on Craigslist, Zillow, or another website to discover potential tenants. You want to make sure the property is rent-ready, take quality photos and video tours of the space, and craft engaging ad copy. You also want to be available for property showings and to answer applicants' questions.

Tenant Screening

As you start to gather renter applications, tenant screenings must be completed, and prospective tenants must be approved. A thorough tenant screening is necessary for a prosperous investment.

You should check a renter's credit information, criminal background, and history of evictions as part of this procedure. You should also confirm their income and contact references and previous landlords. You will have the best likelihood of avoiding any issues down the line by making this initial time commitment.

Handling Tenant Relations

When your run a rental property, you have to provide your tenants with good customer service. Interacting with tenants firsthand will help you understand them and their concerns and needs better, thus enabling you to provide better service to increase tenant retention.

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You must make a lot of compromises, though, if you choose to be a self-managing landlord. Since you'll be balancing marketing, tenant selection, and the labor-intensive chore of overseeing the property’s maintenance, self-management can leave you with less time for other pursuits. What’s more, tenants' questions and concerns can come at all times of the day.

To maintain a good relationship with tenants, you should keep open lines of communication, respond promptly and engage in active listening. You should also schedule check-ins every few months to ensure that nothing slips through the cracks.

If you lack the time for this, a property management firm can tend this on your behalf while keeping you informed about the goings-on at your properties.

Legal Compliance

Employing a property manager relieves you of the bulk of the legal responsibility. Property managers remain up-to-date on the legal knowledge required to maintain a rental property in good working order.

That means that they'll handle the relevant legal paperwork or processes, store security deposits in the appropriate locations, and make sure the applicant selection procedure conforms with Fair Housing Laws.

Streamlining Rent Collection

Rent collection is vital to the health of your investment. That said, the process can take up a lot of a property owner's time, especially if you need to collect rent from multiple tenants. What’s more, if a tenant is with rent or misses the payment altogether the collection process can become even more complex.

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An automated rent payment program offered by a property management company can often handle all the ambiguity involved in rent collection and ensure a steady income for property owners.

Should You Self-Manage Your Rentals?

In the excitement of committing to the purchase of an investment property, management is frequently forgotten, but it may decide the fate of an owner's ROI.

Consider all the landlord responsibilities you will be undertaking if you self-manage before deciding if it’s right for you. These obligations could cost money if they aren’t done correctly, and they will take time from other endeavors you may have.

You must determine how highly you regard your time. The cost of paying a third party to handle the management of your properties can be beneficial since you’ll benefit from their years of industry experience and local connections.

A qualified property management firm will be able to market your rentals, screen tenants, collect monthly rent, maintain all units and respond to the tenant's requests and questions professionally and on your behalf.

Bottom Line

Self-management can be fulfilling if you have the time and skills required to pull it off successfully. However, property owners can also opt to work with a property management firm to enjoy the benefits of steady passive income without all the associated daily tasks that come with managing rentals.

If you’d like to work with a property management company, get in touch with Draper Realty today. We are a management firm that oversees single-family homes, condominiums, and office condos. We also understand that each property is unique and might require a customized management plan.

Draper Realty is the company for you to rely on for a tailor-made plan that fits your needs!

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