Many property owners are extremely price conscious and driven to keep profit margins high. Managing a rental property on your own is one way to potentially save a few dollars each month, but it comes with its own set of challenges. Before you take the leap into self management, ask yourself the following questions. The insight your answers provide will allow you to make an informed decision on the best move for your rental property.
How much time do you have?
When you wear the hat of both landlord and property manager, you're the sole point of contact for your property. From handling routine chores like property inspections and general upkeep, to answering emergency maintenance calls, finding great tenants, and following up on late rent checks, there are innumerable responsibilities on a property manager's plate.
Remember the old adage, "time is money." Many landlords are shocked when they tally up how much time they spend each month taking care of their rental home. And if you have multiple properties, property management can be a full-time job!
How well do you understand the industry?
Most landlords don't think of real estate expertise as indispensable, when in fact, it's one of the most important parts of a successful property management equation. When it comes to marketing a home, finding great tenants, and reducing turnover rates, it's essential to have a strong grasp on how the market works.
Even more importantly, property owners carry a responsibility to respect housing ordinances, insurance requirements, and legislation governing the tenant-landlord relationship. If you find yourself noncompliant, you could face serious financial or legal consequences.
Don't gamble with your property's health. If you don't know what you're doing, don't take the risk.
What does your calendar look like?
DIY managers need to be ready to jump into action at a moment's notice. Emergency repair situation in a rental property you own? You'll need to drive over and fix the problem or get a contractor present pronto.
What if a tenant decides to move out of your property? You'll need to start marketing your home aggressively, scheduling showings, and taking care of any repairs.
Rentals don't wait on vacations, holidays, or weekends. Being a property manager means being on call 24/7. If you're not around to resolve a problem, you risk angering your tenants and creating a whole host of potential headaches.
When it comes down to it, most homeowners decide that the time and commitment associated with managing a rental property is far too much work. Not only does partnering with a professional management company provide peace of mind and reduce the stress on your shoulders, but it can even help you earn more money. At BMG Rentals, we actively look for ways to help our clients save on maintenance and maximize the rental value of their homes. How much are you leaving on the table each month?
Take back your weekends and enjoy the benefits of a professionally managed home that generates strong returns, month in and month out.