Hiring a Property Manager vs. Self-Managing: What’s Better?
Running a rental property will require you to make several important management decisions just like in any other business. Management is a crucial part of real estate investing that will determine the condition of the property, the prompt collection of rent, and the handling of tenants’ requests .
As a landlord, you have two options: run the property yourself or have a property management company carry out the duties of taking care of the property. Each option comes with its own set of positives. However, before making any decision, it’s wise to weigh both options and decide which one is best for you.
In this article, Leenan Property Management will provide information about running a management company by yourself compared to hiring a property management company. This way, you’ll know what the best option is for you!
What Is a Property Management Company?
In order to decide whether or not to hire a property management company, you need to be well-informed on what a property manager is and the duties or tasks they undertake.
In brief, a property manager is a professional who operates, maintains, and oversees the running of a rental property on behalf of the landlord. The property manager acts as the middleman between the tenant and the landlord and often is seen as a representative of the landlord.
Advantages of Using a Property Management Company
1. Management Systems Are Already in Place
Running a rental property can be a bit cumbersome for landlords, but especially for new landlords. One is bound to experience difficulty without the proper resources and documentation in place. The absence of such resources and the lack of knowledge could have far-reaching consequences on the viability of the investment.
A property management company, however, already has these resources and infrastructure in place. They have rent collection tools , owner portal software, marketing strategies, documentation in regards to leasing, and tenant screening procedures, among other services and solutions. Leenan Property Management, for example, has all of these services to offer!
They could also have access to software that is used to record payments and create receipts for your tenants, as well as hold other financial documents. Property management companies may also have a number of service providers and technicians who are necessary contacts for your property.
2. The Ability to Save Time
When you hand off the management responsibilities of your rental unit to a property management company like Leenan Property Management, you are able to free up more time for yourself to carry out other duties.
You can use this time to find other avenues to invest in or venture into other businesses. You can also decide to use your free time to relax which is entirely up to you! In the end, having a property management company allows you to enjoy the full benefits of property investing.
3. An Opportunity to Outsource Problems
Property management comes with a lot of challenges. Tenants require their needs to be met 24/7, rent needs to be collected on time, and the property has to be kept in good condition throughout the year.
You will need to have a thick skin and patience in order to manage tenants. Having a property management company will help you avoid some of these headaches.
Hiring a Property Management Company
If you decide that you would like to hire a property management company, one of the best steps is to look into top-rated property management companies in your area. There is a high chance that if a certain management company has provided good services to certain investors, then they are more likely to do the same for you.
In order to decide whether the company is fit for you and your property, some of the basic questions you can ask include:
How do you screen tenants ?
How do you handle maintenance requests?
How long do properties stay vacant before being leased?
What are some of the services you provide?
For the management of your Regina property, call on the experienced and reputable service provider, Leenan Property Management. We are known throughout the city for our quality services, customized to meet our client’s exact needs!
Becoming Your Own Property Manager
If you decide to become your own property manager, there are a number of responsibilities you will need to carry out. You must familiarize yourself with landlord-tenant laws as well as fair housing laws . You will also need to draft important documents such as leases and application forms, among many others. Additionally, you will have to create a system that you will use for recording payments and generating receipts for tenants.
Advantages of Managing By Yourself
1. Chance to Increase Savings
To offer their services to you, property management companies charge you a percentage of the rental income. By self-managing, you are able to forego that cost.
However, property management fees tend to be very reasonable, and you may find that you’re earning more in the long run with professional help.
2. Exclusive Control
It’s easier to make decisions and implement them by yourself rather than using a third party as you are the sole person responsible for all that goes on with your rental properties.
3. You Are Able to Gain Experience
Truth be told, without prior knowledge and expertise , it will be difficult to run a rental property in the beginning. It might even prove a bit risky to the investment. But it’s only through self-managing that you are able to gain valuable and useful experience. However, unless you want property management to be your sole job, you may not find this experience to be necessary.
The information above can help you decide which type of management would work best for you. Ensure you go over each option and give it consideration before making a final decision. Your main goal in management should be to find a management option that is able to best help your investment grow.
For those who are looking to benefit from the services of a professional property management company, contact the premier service provider in Regina, Leenan Property Management ! Our reputable team is willing and ready to discuss how we may help you.