If you’re a new landlord or if you’re considering hiring a property manager, you’re probably processing the difference between doing it yourself and hiring a professional to do it for you. Although there are things to consider and it can depend on your specific situation, you must know that the relationship between those two is more complex. There are both pros and cons to each.
Allow us to give input on DYI management and property management by outsourcing to an expert.
When deciding between the two, there are several factors to consider. One crucial factor is how much time you have available to devote to the property. DIY management requires that the landlord or investor manage the property themselves, which could take up a significant amount of their time. With property management, the landlord or investor can outsource these tasks to a third party, allowing them more time to focus on other aspects of their life.
Aside from having more time with property management, the landlord will feel another difference. The tenants can bother the person responsible for the property whenever they want. If there is an emergency in the middle of the night, they will immediately call them if they need something repaired as soon as possible. As a landlord (who potentially owns multiple properties), imagine receiving a call in the middle of the night or in your most busy period at work. This is obviously not ideal. This is why we look at property management as a second job.
Usually, the deciding factor that people consider is money. Property management fees can be costly, and depending on the particular company, there may also be add-on costs. For an investor with a single property, the cost of a management company may not appear necessary. Why pay when you can do it yourself? However, is the fee that comes with property managers the only thing to consider? Oftentimes, property managers get special offers from vendors the landlord may need. From cleaning services to reparations, property managers can save the landlord substantial amounts of money in the long term. We can also remind you that the property manager knows how to properly negotiate a good rent so that the owner can benefit most. They may also help navigate the costs that come with having a tenant, helping increase profitability.
Property managers will often have greater expertise in the local real estate market and rental laws. According to Lakeside Park, with more comprehensive industry knowledge than landlords, property managers can be incredibly helpful. For example, a property manager understands the rental trends in the area and how to price rental units to increase cash flow, conduct all the background checks and run all the paperwork needed, while a landlord might lack the experience or education to do so. Also property managers also possess the technical skills needed to advertise, collect rent, and manage tenants that landlords may not possess. This knowledge can be invaluable when making smart decisions about leasing and managing a property, enabling landlords to make sound investments and maximize the return on their investments.
Due to their knowledge and access to potential tenants, property managers can easily fill a vacant property where a landlord might struggle to find qualified tenants. This is one example of when DYI property management decreases the property’s performance and returns on investment.
The upside of DIY management is that it allows the landlord to completely control their property. If the landlord is someone that needs to have a complete overview of their investment and has a tendency to micromanage people, then they may feel uneasy handing everything over to a manager. However, property managers are responsible for updating the owner and putting every financial mention in a report that can be made as often as the landlord would like. So, even with somebody else in charge, the owner will still have a bid-eye overview of their investment.
One property vs. more properties
Doing it all by yourself can be easy when you have one small property to manage. Let’s say the tenants are easy to get along with; they might not need your attention as much. However, if you own more than one, it can become a hazard. This is when the landlord will start to feel the need for a property manager. Their single job is to run properties; they have experience running multiple at the same time, so they will handle everything efficiently.
In summary, choosing between the two will depend on the landlord’s goals, situation, financial considerations, etc. We hope to give the people who are in the middle of their decision-making process insights to help them make an educated choice.
Get in touch with us today and learn more about our services.