Hello there and thank you for reading this article. In it, I will be speaking about the benefits of property self-management. When it comes to having a rental property of your own, there are two things you can do: you can try and manage it by yourself, or you can go and hire a professional property manager.
But lets take a few steps back and think of what it takes to successfully run (manage) any rental property. A property is a financial success (and most property owners want their property to be financially successful) when all of its rental units are occupied by tenants who:
Take care of your property as if it was their own
Make regular and timely rent payments
So what should a property owner (or a property manager) do to have all those goodies? The answer is: “He should be able to distinguish a good tenant from a bad one.” So, if you think that is something you can do on your own, then you should definitely consider self-managing your own property. Are there any benefits? There definitely are and I list them below:
You dont need to pay the property management bill every month. This is a big one especially if you only have just a few rental units and your rental property is still owned by the bank.
You get to deal with maintenance contractors by yourself. What happens is that most property management companies employ their own in-house maintenance team and they obviously charge more for their work. In other words you get to save on your propertys maintenance.
Many times a professional property manager will not care as much about your property as you would. They are simply paid to do their job. But when it comes to you, you may have spent all of your savings and borrowed from your bank, so it is important that your rental property is treated with care and full dedication. So, by self-managing your property, you have all that in direct control.
Most property management firms charge you for every filled vacancy. If you run it by yourself, you get to deal with every prospect tenant in person, so there is no need to pay anyone to fill a vacancy.
If your property management company is located a bit away from the actual property and they require tenants to show up at their office to pay the rent,, this creates an extra inconvenience and if there are other rental properties in the same area you risk to have your tenants leaving you.
Since you spend lots of time self-running your property, you know first-hand of the maintenance work that needs to be done. This way you dont run the risk of having inexpensive issues turning into costly-problems.
As you can see, there are quite a few pros of running your own rental property by yourself. But before you get your hands dirty, make sure you assess your own personality first. To be a landlord involves lots of people work and if working with people is not your thing, then you might consider outsourcing this role to someone else!