When you manage your own property, there are ups and downs to the process. Whether you’ve recently acquired a property that needs managing and you think you’re the best person for the job, or you just don’t trust your property to anyone else, here are some pros and cons to consider for landlord property management.
Pros and Cons of Landlord Property Management
Pro: Get to Handle Everything Yourself
When you manage your own property, you’ll get to handle everything yourself. This means there’s no guessing, no handing off things to anyone else, and no one else to take care of the property except for you. This is a pro because you’ll personally get to handle issues, tenants, and the property. Without a property manager, you’ll have first-hand access to the property and therefore the best knowledge on how to handle it because you’ll know exactly what’s going on.
Con: All Responsibilities are Yours
A con to landlord property management is that you shoulder all the responsibility for the property. This means you’ll have a few things to figure out, such as will you or are you qualified to perform maintenance tasks yourself or will you be looking into hiring someone to do these tasks? If you’ll be hiring someone, you’ll need to be confident in your choices in order for your tenants to be happy with the work that’s being done and to prevent other problems in the future. When you have all the responsibility, there’s no one else to appoint to the job or point the finger at when things might not go right with your property.
Pro: Find and Screen Tenants Yourself
Usually a property manager will handle and screen tenants as well as decide who to market to when handling your property. But with being a landlord, you’ll get to be in charge of things yourself. This can have some great advantages as you can find tenants that you feel will be the best fit for your property. Or, maybe you know of someone looking to rent by word of mouth from a person that you trust and like. When screening tenants, you can also look for specific qualities of tenants who will take care of the property and contact references yourself. Who better to make the choice about who lives on your property than you?
Con: Need to Live Relatively Close
If you don’t live really close to your property, having to manage the property yourself might be something of a hassle for you. Checking on the property both when there are tenants there and when there’s not is something you’ll need to do in addition to doing inspections, maintenance checks, and general maintenance. If you have to travel some distance to get there, landlord property management might be a little more difficult and time consuming than you think.
Pro: Direct Contact with Clients
Having direct contact with clients with your landlord property management can have some great benefits. When you’re communicating directly with tenants, not only will you get to build rapport with them, but you’ll also get to hear problems and compliments directly from them. This means no interpreting from your property manager what was actually said or what the problem is, you’ll get to know yourself. Not having a property manager can cut to the chase and eliminate some communication hurdles.
Marketing your property might not be something you feel like spending your time doing. For this area, it helps to make connections in real estate if you don’t have any already or even with other property owners or managers who do their own landlord property management. Marketing your property doesn’t have to be very time consuming, just make sure you know what tenants you’d like to market to and what audiences you’ll reach with what form of advertising. Older renters may tend to look in the paper while younger rents may search exclusively online.
Pro: Familiarity with the Property
Who knows your property better than you? When it comes to landlord property management, your familiarity with the property will be a huge advantage. Not only can you better market the property and better prepare clients for what to expect when they move in, but you’re most likely familiar with maintenance issues as well and can check all the proper places if not perform some of the maintenance yourself. Your landlord property management has an advantage with your familiarity.
Landlord property management has its pros and cons, but when it comes to your property, you’ll need to decide what’s best for you. By considering such factors as location, marketing, responsibility, and your relationship with your tenants, you can make the decision that will best fit you and your lifestyle.