There are a lot of critical decisions to make when investing in residential rental property. Making a decision about how you’ll handle the day-to-day management of your property might be the most critical thing on your list. Should you self-manage your rental property, or would it be savvier to hire a property manager? Each case is different, but the decision you make on this matter can have an effect on everything from your free time to your bottom line. So, let’s break it down.
Why Property Owners Choose Self-Management
A lot of rental property owners are lured by the idea of being hands-on. 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, and lease renewals, etc. Furthermore, some owners like building direct relationships with tenants and take pride in personally dealing with their investment.
If you have excellent handyman skills and plenty of time, performing your own maintenance and management could work for you. Also, some property owners think they can save money by avoiding property management fees, which can sometimes be a huge factor in their decision.
Logistically, rental property self-management is possible if you reside close to your rental, possess the time and energy to manage maintenance calls and inspections, and understand the particulars of local landlord-tenant laws. Just keep in mind: managing a property is more than gathering rent checks. It can be a lot to juggle.
Managing Investment Properties: Common Challenges
Managing your properties yourself may seem like a good idea, but it can be difficult to do. For example, managing investment properties by yourself signifies you’re the one available to take late-night calls about leaks or lockouts. You’re also responsible for keeping up with changes in laws and regulations, fair housing rules, and applying lease agreements.
Contrary to common belief, several first-time landlords have found that being a property manager is a demanding job in its own right. If you lack time to manage it properly, or if you make a slip-up, like mishandling a security deposit or not following eviction laws properly, it can cost you much more than you’d ever spend in property management fees. Therefore, while there are reasons to manage your own properties, there are also several reasons why you may choose not to.
Benefits of Hiring a Property Manager
On the contrary, think about what you may get by hiring a property manager. For starters, when you partner 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 manage emergency calls and encourage tenant relations. They stay up to date on rental laws, so you stay compliant and avoid legal headaches.
A great property manager also keeps your units occupied longer by retaining reliable tenants. They know how to acquire information, price your rental competitively, and keep maintenance issues from turning into major concerns. A lot of rental property owners witness that paying property management fees is worth it for the peace of mind alone.
Understanding Property Management Fees
In terms of charges, when working with a property manager, it’s vital to know what to anticipate. A lot of property managers take a percentage of the monthly rent, along with possible leasing or placement fees. When you consider these prices, don’t forget 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 causes less turnover and steadier income for you. A well-managed property should also be proactively maintained, which helps further reduce unexpected expenses and keep costs low. When thinking about it in this way, hiring a quality property manager can actually save you time, reduce hassle, and save money over the life of your investment.
Finding the Right Management Balance
In the end, there’s no right or wrong answer to whether you should be hands-on or hands-off with your rental property. Some owners do an excellent job of self-managing their rental property, while others love the freedom and confidence that comes with partnering with a great property manager.
If you want to know how professional management could make your life easier, speak with Real Property Management Tri-State Area right away. We’re here to help you protect your investment in King of Prussia and generate more money from rentals without any extra work or stress. Contact us online or call 610-497-2700.
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