Before you become your own Property Manager...
Usually, owners find that managing their properties is not really what they expected and is a lot harder than they expected. If you decide to manage your own property, you need to think through carefully what’s involved in managing it effectively and profitably.
Can you be committed to being on call?
As a propety owner you can expect calls at any time of day or night. Your tenants will call you personally, when you least expect it and expect you to resolve problems or sort out disputes immediately. It is thus recommended that you hire a property maanager.
Can you commit to dropping whatever you’re doing and focusing on property management issues? Do you have time to make many small decisions?
You are responsible for the results of all decisions made by on-site resident managers. You must decide:
- How much spending authority to grant
- Who will make leasing decisions
- Who will make collections and evictions
- Who will select vendors and can they be selected objectively
The cost of a poorly handled eviction or the problems created by unscrupulous vendors can be extreme. Of course, th one surefire way to avoid poor staff decision making or outright fraud is to make the decisions yourself.
Do you even the inclination or even have the time?
How many times a month can you visit your property? Plan doing a inspection of your property once a week, including at nights and on weekends. You could be held liable for unsafe conditions on your property even if you didn’t know they existed.
You need to make time for property management seminars? Laws affecting rental properties change constantly. As property owner, it is your duty to keep up with all the changes. If seminars are your thing, you are in luck. You’ll have your choice of many seminars—including many scheduled on weekends or evenings.
Get ready to lawyer up...: Seminars alone will not keep you out of court. Residential property management is highly regulated. Thus statutes and legal entities exist solely to resolve disputes between landlords and tenants. As a property owner or residential property manageer you will need to learn this complex and constantly changing system quickly.
This is going to be more like a second job...
When you buy and manage your own rental property, you are really taking on a second job. Was that really your intention when you invested in an income property? Is property management really best use of your time? How well does do it yourself property management pay if, after taxes, you keep only half of what you save in management fees? You may find that hiring a property manager is really the way to go. A reputable management company offers the expertise, screening procedures and rent-collection policies that will increase your peace of mind and cash flow. It is important to keep the management of your property in good hands. Property Management Resource provides you with a selection of top prescreened property managers to serve your needs.