A lot more goes into managing rental properties that most people realize – as any experienced investor can tell you, it’s not just collecting rent checks.
Determining whether or not you want to hire a property manager or go the DIY route depends on a number of factors. A significant amount of time, money and energy is required for the process, which can add up quickly. Consider these matters before you decide which route is best for you.
ARE YOU HIGH OR LOW MAINTENANCE?
Renters are not always the most gentle on their spaces, and properties are always going to require upkeep even if they are. You’ll need to schedule seasonal maintenance throughout the year to stay on top of things, so having reliable contractors at your fingertips is of utmost importance. These can be hard to come by if you’re just getting into the business.
TOLERABLE OF TENANTS?
As a landlord, you’re going to be dealing in financial matters with a variety of people and personalities. Not all of them are going to handle things as responsibly as you’d like. Your ability to remain level-headed through disputes may play a role in whether you’re a good candidate for self-managing properties.
SHOW ME THE MONEY
When tenants dutifully send their check each month as described in the lease, life is easy. Life isn’t always easy. There are a lot of variables that can go into why you don’t have the check on your desk each month, but you can bet it will happen. Be prepared to spend some time and aggravation dealing with this problem.
ALWAYS ON CALL
Do you mind getting the 3 a.m. phone call that a pipe burst? Property emergencies are part of the game, so you have to decide if you mind being the person that has to make sure they’re tended to.
KNOW THE LAW
As landlord, you have to be certain the property is run in accordance with the law, so familiarity with legal requirements and contracts is a must. A property management firm can make sure you’re in good legal position if you are not well-versed in these matters.
CONSIDER YOUR TIME
Only you can decide if managing the property yourself is a good investment in your time and energy, or if hiring a property management firm fits into your vision and budget for the project. Investors must assess the pros and cons of both sides.
For more information on how DRK and Company can assist you with property management or other commercial real estate services, call 614-540-2404 or contact us online.