Investing in residential rental property comes with a variety of important choices to consider. One of the most important choices you’ll need to make is figuring out how you’ll handle the day-to-day management of your property. Should you self-manage your rental property, or is hiring a property manager the smarter move? Every situation is unique, and your decision on this matter can influence everything from your leisure time to your bottom line. So, let’s take a closer look at this.
Why Property Owners Choose Self-Management
Lots of rental property owners find the idea of being hands-on quite appealing. This approach might be suitable for a few reasons. 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, to name a few. Additionally, some owners love building direct relationships with tenants and take pride in personally maintaining their investment.
If you have great handyman skills and some free time, taking care of your own maintenance and management could be a good fit for you. Moreover, some property owners think they can save money by skipping property management fees, which can be an important part of their decision-making process.
Logistically, rental property self-management can work well if you live close to your rental, have the time and energy to handle maintenance calls and inspections, and are familiar with the particulars of local landlord-tenant laws. Just remember: managing a property is more than gathering rent checks. It can be quite a handful.
Managing Investment Properties: Common Challenges
Managing your properties yourself can be a rewarding experience, but it does come with some real challenges. For instance, if you’re managing investment properties on your own, you’ll be the one receiving those late-night calls about leaks or lockouts. It’s important to stay updated with changes in laws and regulations, fair housing rules, and to make sure lease agreements are enforced.
Contrary to popular belief, several first-time landlords find that being a property manager is a demanding job in its own right. If you find yourself short on time to manage it properly, or if a mistake happens, like mishandling a security deposit or not following eviction laws properly, it could end up costing you much more than what you would pay in property management fees. There are definitely some great reasons to manage your own properties, but there are also plenty of reasons you might choose not to.
Benefits of Hiring a Property Manager
On the other hand, think about all the benefits you could enjoy by hiring a property manager. For starters, when you choose 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 handle emergency calls and build tenant relations. They keep you informed about rental laws, helping you stay compliant and avoid legal headaches.
A great property manager also keeps your units occupied longer by keeping quality tenants. They have a great approach to gathering data, price their rental competitively, and prevent maintenance issues from escalating. Lots of rental property owners discover that paying property management fees is worth it for the peace of mind alone.
Understanding Property Management Fees
When it comes to fees, when working with a property manager, it’s important to comprehend what to expect. Many property managers charge a percentage of the monthly rent, along with possible leasing or placement fees. As you consider these costs, keep in mind 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 indicates 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 down. When you think about it, hiring a quality property manager can really help you save time, reduce hassle, and even save money over the life of your investment.
Finding the Right Management Balance
At the end of the day, there’s no right or wrong answer to whether you should be hands-on or hands-off with your rental property. Some owners really shine when they self-manage their rental property, while others appreciate the freedom and confidence that comes with hiring a great property manager.
If you’re excited to discover how professional management can simplify your life, feel free to contact Real Property Management Three Bridges today. We’re here to help you protect your investment in St Louis and boost your rental income, all while keeping things easy and stress-free. Contact us online or call 636-542-8852.
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