George K.
There are many reasons why you should and also many reasons why you shouldn’t manage your own rental properties. Let’s have a deeper look into what stands behind these reasons so we could better help you make the dedication. Here are some of the most compelling votes for and against you managing your property.
You Should Because It’s Less Expensive
Let’s kick off this whether you should or shouldn’t manage your rental properties discussion with an obvious first contestant – the cost. Professional property management however efficient it is can cost a lot of money. This is especially true if you’re new to the rental property ordeal, and are looking to save up as much money as you can in the early years. The reasonable decision if you want to invest your time in property management on your own and gain experience is to manage it yourself. Although it may be tough at first, you should be able to work your way around it. As a rule of thumb, the average cost of professional management services is about 10% of your total rental income, which can be a lot for some property owners. If this is you, you should embark on the self-management journey, but be aware of how much time and learning it will take.
You Shouldn’t Because It’s Very Hard
One thing to note early on is that property management is so much more than the name initially suggests. It includes many aspects such as maintenance, management of property, management of tenants, and serious budgeting and data gathering to improve your finances. Property management is very hard because not only does it have a lot of aspects to cover, it requires person-to-person communication and professionalism daily and not many people have the good social skills required for the job. As professionals over at Mynd.co suggest, this is why many professional property managers take years to master the organizational and networking skills which include cooperating with all the vendors that your property might need when regular maintenance checkups come rolling in. They often have special deals which can help you save up on repairs and refurbishment costs. Ultimately, having your property professionally managed will certainly spare you the stress of having to deal with the aforementioned aspects and it can also give you professional insights into how to better your income.
You Should Because It Gives You More Control
If you don’t like the idea of having someone hover over your rental properties despite all the benefits, you should self-manage your rental properties. This is also a good idea if you would like to have a better relationship with your tenants, or you already do, and wouldn’t want anyone else to manage the property they live in. As we’ve mentioned before, managing your rental property by yourself will also allow you to have full control over all the details no matter how big or small they are. You will get to choose who gets to live in your rental property, as well as drawing up unique contracts to directly meet both your and the tenant’s needs. Some property owners like having the final say because it gives them confidence and the experience needed to excel in property management skills. If this is what you’re after, the scale is tipped more towards you being the manager of the property.
You Shouldn’t Because It Will Take Your Eye off Core Business
Another very important reason you should consider having a professional manage your rental properties is that it will take up so much of your time that you probably won’t end up focusing on growing your business because you will be so busy managing it. While it may be tempting to self-manage your property because of the initial savings and the potential experience you could gain, you might want to reconsider if you’re looking to grow your business. Many people end up satisfied with just a few rental properties but don’t realize they can achieve much bigger goals by having the present properties not only professionally managed, but getting the most out of the price by having professional rent estimates and collections in a timely fashion. Leaving the management to professionals will leave you focused on growing your business which is why we strongly recommend that you think about hiring professionals to manage your property in the best way possible.
After a long discussion, we’ve concluded that the scales tip to the side which is for professional property management. Once all is said and done, is it worth the stress, the money, and the potential experience that you may not end up gaining by embarking on this extremely hard task all on your own.
