Residents
Owners
If you’re a rental property owner, it perhaps dawns on your mind whether it’s better to hire a property manager or oversee the management of your property yourself. The two options sure have their respective advantages and disadvantages.
In this blog article, we’re going to look at the pros and cons of both options to help you decide which is best for your rental property business.
You don’t have much time to manage the daily operations of your rental property? Are you complaining about taking all the brunt of being a landlord?
Then, it’s time to consider hiring a property manager to assume control of your property management responsibilities. Consider these downsides and upsides of getting a property manager.
Advantages
- Less Work for the Property Owner. Once the property manager takes over the daily operations of your rental property, you can take a back seat and let the manager do the work. There’s no need for you to worry about the property maintenance, no phone calls, and no unnecessary interactions with your tenants. Your hired property manager will carry out these duties for you.
- The Property Manager Does the Listing. It takes expertise and a good grasp of the rental competition in your area to market your property. The advantage of hiring a property manager is he will be in charge of the property listing and setting a competitive rental rate.
- You Won’t Do the Screening of Tenants. The property manager will handle the screening process using an effective system of background checks in choosing the best tenants.
- The Manager Collects Rent Payments. Collecting rent payments from your tenants is rather awkward for some landlords, especially if you’re dealing with late payments. No need to worry about this if you have a property manager.
- You’re Free from Maintenance Management. Your property manager has to oversee the maintenance of your property. The manager will choose the maintenance team and contractors to ensure that your rental building and its equipment are in excellent condition.
Disadvantages
- Cost. Hiring a property manager is an added cost to your rental property investment. Property management companies charge fees ranging from 6% to 10% of your monthly rental cash flow.
Limited Control. Property management companies have their own guidelines that limit your control over your property. For example, you can’t screen prospective tenants, set the rent price, and interact with your tenants.
Managing Your Rental Property by Yourself
If you’re a rental property owner who wants to be hands-on with the management of your rental property, you’re free to choose not to hire a property management company. Today, you can find various property management software that can help you with streamlining the tasks of a landlord.
Now, let’s distinguish the advantages and disadvantages of landlording your rental property with the help of DIY property management software.
Advantages
- Full Control Over the Screening of Tenants. It’s an advantage for some rental property owners to have control over the selection of tenants. You can choose the people that rent your property, giving you a kind of ease with your choice. For better background checks, there are online platforms that systematize the evaluation of prospective tenants.
- Less Costly. One obvious advantage of managing your rental property by yourself is that you don’t need to pay for a hired property manager. Minus the common expenses, much of your monthly rental profit goes to your pocket. If you choose to use DIY property management software, you can buy one at an affordable price or avail of it for free.
- You Can Decide What’s the Rental Price. Having the last say on the rental price is also an advantage of being a landlord. This way you’re sure of what you can get off your investment. Also, many property management software can provide you with a report on the competitive rental price in your area.
Disadvantages
- More Work. Rental property management can be burdensome if you choose to do most of the work by yourself. Without hiring a property manager, you might fail to organize certain aspects of property management. Failure to get organized is inevitable when you try to manage a great number of tenants or properties all alone.
- Lack of Expertise. Sometimes we can overestimate ourselves in doing things of which we have little knowledge. Some first-time landlords can also be too excited and confident that they can handle the management of their rental properties. Property listing, screening of tenants, rental price analysis, property maintenance, and other aspects of property management require some expertise to be successful from it.
Takeaway
So, which is better for you: hiring a property manager or DIY rental property management? The choice is all up to you, but don’t forget to weigh the pros and cons of these two options before you decide. It’s advisable to read more on this topic or ask some experts to help you form a better decision.
Should you do DIY rental property management or hire a property manager? What are the pros and cons? Read the article to know.
