Thinking of self-managing your rental property to save money and become your own boss? It can be tempting to manage your investment properties on your own, especially if you have time and live relatively close to the properties. Unfortunately, there is a whole lot more that goes into managing property than calling a plumber when there is a leak and collecting rent monthly.
Let’s discuss the potential pitfalls and dangers of self-managing your investment property and why it may be a smarter move to hire professionals.
Uncovering the Pitfalls of Self- Management
For anyone who has rented an apartment or been part of a condominium HOA, it may seem like what the property managers do is simple and straightforward: collect rent, handle repairs and fill vacancies. This is not all property managers do, and some tasks can be costly and carry unexpected legal ramifications.
From unexpected time commitments in the middle of the night to compliance mistakes, “doing it yourself” property management may not be as ideal as some landlords think.
The Time Commitment
Many property managers are unaware that the time commitment in handling the repairs, maintenance, vacancies and rent collection can quickly become a full-time job (plus some). Repair and maintenance requests alone can quickly become overwhelming if the property is older or its main components need capital repairs. Scheduling and juggling contractors’ calls can take up a lot of time.
Good property management companies communicate regularly with tenants and make efforts to improve the property and the evolving ways that requests and repairs are made. Keeping up with the changes can be dizzying.
Legal Pitfalls
Navigating the ins and outs of landlord-tenant laws at the state and municipal levels can be a job unto itself. Understanding the laws and compliance regulations in your region can be challenging if you are new to the rental industry.
The Cost of Vacancies
It may seem easy to turn over a rental unit from one tenant to the next. However, this is where the real work begins. Advertising for openings, background checking new candidates and making sure the unit is clean and ready for the next tenant can be a costly endeavor. The screening process alone can take so long that a vacancy may remain open beyond the last renter’s end date, costing you lost income.
Maintenance Mishaps
Unless an owner, who wants to self-manage, has access to a list of qualified contractors to manage electrical, plumbing and landscaping issues, it may be an expensive task to handle maintenance issues on their own. Professional property managers have established relationships with reliable contractors, often securing better rates and faster service.
Self-managing your property can quickly turn from a cost-saving measure into a full-time, high-risk endeavor, draining your time with 24/7 maintenance demands, exposing you to legal liabilities, and costing you income through prolonged vacancies. Don’t let the hidden dangers and unexpected costs of DIY property management jeopardize your investment. Instead of juggling contractors, tenant screenings, and complex landlord-tenant laws, trust the experts at Thayer & Associates to handle the complexities of professional property management.