Investing in residential rental property provides a variety of exciting opportunities to discover. One of the most thrilling decisions to make is determining how you’ll handle the day-to-day management of your property. Is self-managing your rental property the right decision for you, or could hiring a property manager be the savvier option? Every scenario brings its own unique opportunities, and your decision on this matter can positively impact everything from your free time to your bottom line. So, let’s analyze it.
Why Property Owners Choose Self-Management
Several rental property owners are drawn to the idea of being hands-on. There are several reasons why this approach might be suitable for some. For instance, 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, to name a few. In addition, some owners find joy in establishing direct relationships with tenants and take pride in personally managing their investment.
If you have great handyman skills and plenty of time, handling your own maintenance and management could be a great option for you. Moreover, some property owners are hopeful that they can cut expenses by forgoing property management fees, which can sometimes be a huge factor in their decision.
Logistically, rental property self-management can be useful if you live close to your rental, have the time and energy to manage maintenance calls and inspections, and know the ins and outs of local landlord-tenant laws. Just remember: managing a property is more than collecting rent checks. It can be a lot to organize.
Managing Investment Properties: Common Challenges
Managing your properties yourself can be a great experience, and it gives opportunities to overcome some difficulties along the way. Managing investment properties solo means you’re the one responsible for answering late-night calls about leaks or lockouts. You’re also accountable for keeping up with changes in laws and regulations, fair housing rules, and enforcing lease agreements.
In contrast to popular belief, several first-time landlords observe 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 an error, like mishandling a security deposit or not following eviction laws properly, it can cost you much more than you’d ever pay in property management fees. So, 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 other hand, think about the great benefits you could enjoy by hiring a property manager. Initially, when you work with a quality property management company, you gain a team of professionals who handle everything from marketing your property and screening tenants to collecting rent and managing repairs. They deal with emergency calls and cultivate tenant relations. They keep you updated about rental laws, ensuring you stay compliant and avoid legal headaches.
A great property manager also keeps your units occupied longer by attracting quality tenants. They have an excellent approach to acquiring data, price their rentals competitively, and prevent maintenance issues from intensifying. Numerous rental property owners find that paying property management fees is worth it for the peace of mind alone.
Understanding Property Management Fees
When it comes to charges, when working with a property manager, it’s crucial to recognize what to assume. Most property managers charge a percentage of the monthly rent, along with possible leasing or placement fees. As you consider these expenses, think about that in the long term, you’re investing in your time, resident satisfaction, and the long-term value of your property.
Well-managed properties often encounter fewer vacancies and happier tenants, leading to 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. Viewing it from this perspective, hiring a quality property manager can actually save you time and hassle and conserve money over the life of your investment.
Finding the Right Management Balance
Basically, there’s no right or wrong answer to whether you should be hands-on or hands-off with your rental property. Some owners thrive when they self-manage their rental property, while others appreciate the freedom and confidence that comes with hiring a dependable property manager.
If you’re ready to discover how professional management can improve your life, get in touch with Real Property Management NorthStar today. We’re here to help you protect your investment in Rockwall and improve your rental income, all while keeping things easy and stress-free. Contact us online or call 469-745-8199.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
