You’ve recently purchased a home or multi-unit building and are ready to become a landlord. Welcome to the world of real estate investment. Now, you need to decide whether to manage those rentals yourself or hire a property management company to do the work for you. There are plenty of pluses and minuses for both decisions. It really depends on your needs and how much time and effort you can put into the process. Property owners can choose to bring in a management team at any point. So, if DIY property management sounds appealing, you can try being more involved with those rental homes. Should the work become too much, you can always start looking for a property management company in Salt Lake City.
Pros Of DIY Property Management
Those with a can-do attitude can get a lot out of managing their own rentals. Most areas don’t require certifications of property owners to rent out their own homes and apartment buildings. Of course, it’s always a good idea to double-check the local regulations before renting to tenants.
To make life easier, this process can be taken on in steps, and minimal effort is needed after you find a dependable tenant. You can make these steps as small as you like, starting with advertising the rental and ending with depositing those checks to your bank account.
DIYers also save themselves the fees that a property management service would bring with it. When just starting out in real estate investing or if you only plan on sticking to a couple of properties, managing your own rentals is a good idea. Property owners can learn a lot from the process and save money to put towards maintenance costs and other investments. However, it may become hard to manage those rentals without help as you build up your portfolio.
Cons Of DIY Property Management
When you need to keep up with every aspect of running your small business, it quickly becomes a chore. DIY management means that property owners are completely responsible for everything. You must get the home ready for tenants by cleaning it and repairing damage or else hiring a contractor to do so. You’ll also have to deal with advertising, daily management activities, and legal issues. All the tasks you’ll need to take care of include:
- Cleaning Up the Rental for Tenants
- Advertising the Rental
- Creating a Rental Agreement
- Meeting With Tenants
- Running Background Checks
- Collecting Rent Checks
- Keeping the Property Maintained for Tenants
Evictions and Lawsuits
Not all tenants keep up with their monthly rental payments. If they fall behind and are unwilling to work out an agreement to catch up again, it may become necessary to evict them. This is a process that property owners absolutely must complete within the letter of the law. So, the burden falls on you to learn local tenant’s rights laws or hire a lawyer to initiate the eviction process. Even if you have great tenants, you’ll still need to be available to handle complaints or take care of repair needs
Pros Of Hiring a Property Management Company
Sometimes, investors can have too many properties to maintain and collect rent on. When maintaining your rentals becomes a full-time job, it’s time to consider hiring a property management company in Salt Lake City.
These property managers take over the work of maintaining properties, vetting tenants, and collecting rents. Their services are usually available for a modest fee for every new tenant brought in and a small percentage of the rent collected each month.
Experienced Leasing Agents
Property management companies are experienced in handling potential tenants. They can ensure that only reliable tenants with good background checks move into your homes or apartments. Managers are also skilled at giving tenants the bad news if they don’t qualify for a rental. For many property owners, dealing with upset tenants and handling the necessary process of eviction for non-payment is a very unpleasant experience. A professional property manager can take care of this process for you and do so with a minimal level of discomfort for tenants too.
Cons Of Hiring a Property Management Company
With every potential benefit of hiring a property manager, there are also limitations. For most investors who own just one or two properties, the costs of hiring a property management team may seem too high. Every penny counts when working with a smaller portfolio, but that doesn’t mean that a professional service is completely out of reach. Property owners may be able to find a company that:
- Has Affordable Rates
- Takes Their Percentage From Collected Rent Checks
- Offers a La Carte Services
Another potential drawback of hiring a third party is that you won’t have direct contact with the tenants. Property owners who prefer the hands-on experience or who want to get to know their renters may find this frustrating. It can mean that you have less involvement in the day-to-day activities of managing your properties too.
When you choose a management company to take care of your real estate investments, you’ll still be in control. You are still the property owner and will still have full say your rental policies and procedures. Management companies follow your wishes when it comes to how the property is maintained and who to rent it out too. Those who need to be able to review each application and select the tenants themselves can still do so. You can do as much or as little as you like with the right property management team.