Why Some Owners Choose to Self-Manage a Rental Property
Many rental property owners are drawn to the idea of being hands-on. There are several reasons why this approach might be suitable for some. 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 enjoy building direct relationships with tenants and take pride in personally maintaining their investment.
With robust handyman skills and sufficient time, rental property self-management can be practical. Additionally, avoiding property management fees often motivates some property owners to manage their own properties.
Logistically, self-managing a rental property is manageable if you reside close to your rental, possess the time and energy for maintenance calls and inspections, and are familiar with local landlord-tenant laws. However, managing a property involves more than collecting rent checks; it requires substantial commitment.
The Challenges of Managing Investment Properties Alone
While managing your properties yourself may seem enticing, it presents considerable challenges. For example, managing investment properties alone requires you to handle late-night calls about leaks or lockouts and stay updated on changes in laws and regulations, fair housing rules, and lease agreements.
Many first-time landlords discover that being a property manager is a demanding job. Failing to manage it properly, such as mishandling a security deposit or not following eviction laws, can cost you significantly more than property management fees. Thus, while self-managing offers advantages, there are also compelling reasons to choose not to.
Benefits of Hiring a Property Manager
In contrast, consider what you may gain by hiring a property manager. For starters, when you hire 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 field emergency calls and cultivate tenant relations. They stay up to date on rental laws, so you stay compliant and avoid legal headaches.
A proficient property manager keeps units occupied longer by retaining quality tenants, knowing how to price your rental competitively, and addressing maintenance promptly. Many rental property owners find that paying property management fees is worth it for the serenity it provides.
Understanding Property Management Fees
When working with a property manager, understanding the associated costs is vital. Property managers typically charge a percentage of the monthly rent, plus potential leasing or placement fees. These costs are an investment in your time, resident satisfaction, and the long-term value of your property.
Well-managed properties experience fewer vacancies and happier tenants, leading to less turnover and steadier income. A well-managed property, proactively maintained, helps reduce unexpected expenses. Thus, hiring a quality property manager can save time, hassle, and costs over the life of your investment.
Find the Right Balance for Your Investment
Ultimately, there is no right or wrong answer to whether you should be hands-on or hands-off with your rental property. Some thrive when they self-manage their rental property, while others value the freedom and confidence from professional management.
If you are ready to explore how professional management can simplify your responsibilities, contact Real Property Management Southeast Idaho today. We are dedicated to helping you protect your investment in Rigby and grow your rental income without added stress. Contact us online or call 208-522-2400.