Do I Need a Property Manager?

So, you've become a landlord – congratulations! Now comes the big question: do you need a property manager, or can you handle things yourself? It's a decision many new and even experienced landlords grapple with. There's no one-size-fits-all answer, as it depends heavily on your individual circumstances, resources, and desired level of involvement. Let's dive into the pros and cons of self-managing your rental property to help you make the right choice.

The Allure of Self-Management: Pros

For some landlords, the idea of being directly involved in every aspect of their rental property is appealing. Here are some of the key benefits of self-management:

• You Know What's Happening at All Times: You have firsthand knowledge of tenant interactions, property maintenance, and any issues that arise. This direct oversight can provide a sense of control and peace of mind.
• You Directly Make All Decisions: As the owner, you have the final say on everything, from tenant selection to repair vendors. There's no need to consult with or get approval from a third party.
• You Don't Have to Pay a Property Manager: This is often the most significant perceived benefit. Property management fees can range from a percentage of the monthly rent to flat fees, and eliminating this expense can seem like a substantial saving.

The Realities of Self-Management: Cons

While the idea of saving money and being in control is attractive, self-management comes with a significant time and effort commitment. Here are some of the potential downsides:

• Handling the Full Leasing Process: Finding and screening tenants is a time-consuming and crucial task. It involves marketing the property, showing it to prospective tenants, processing applications, conducting background and credit checks, and drafting the lease agreement.
• Managing Everything and Everyone: Once you have a tenant, you become responsible for all aspects of property management, including responding to maintenance requests, coordinating repairs, handling tenant communications (including potentially difficult situations), and ensuring rent is paid on time.

Some Things to Consider…

Before you decide to go it alone, honestly assess your capabilities and capacity by considering the following questions:

• Do you have the resources in place to lease and manage yourself? This includes time, organizational skills, and potentially software or tools to help you stay organized.
• Do you know how to prepare the property to list for rent? This involves ensuring the property is clean, safe, and appealing to potential tenants.
• Do you know where to advertise the property, and also where not to? Effective marketing is key to finding qualified tenants quickly.
• Are you available to service the incoming inquiries from leads? Be prepared for lots of phone calls, text messages, and emails, often at inconvenient times.
• What questions will you ask the prospective tenants? Knowing how to effectively screen tenants is crucial to minimizing future problems.
• Are you available to show the property on short notice, at night, and on weekends? Tenant showings often require flexibility in your schedule.
• What credit, background, and employment criteria will you have in place for vetting applicants? Establishing clear and legal criteria is essential for fair and effective screening.
• Will you create your own lease, buy one online, or hire an attorney? A legally sound lease agreement is vital for protecting your interests.
• Do you have a checklist of what both you and the tenant need to do for a smooth move-in experience? A well-organized move-in process sets the stage for a positive landlord-tenant relationship.
• How do you feel about managing the tenant communications, property maintenance, and vendor engagement? This can be demanding and require strong communication and problem-solving skills.
• Are you set up to collect rent, charge fees, track invoices and expenses, and legally process tenant security deposits? Efficient financial management and adherence to local laws are critical.
• What happens when the lease is ending? Do you have a lease renewal process? Planning for lease renewals or tenant move-outs is an important part of property management.
• What happens when the tenant moves out? What common issues can you avoid? Handling move-out inspections, security deposit returns, and potential damages requires knowledge of relevant regulations.

Ultimately the way to know if you need a property manager or not is, “What experience do you want to have?”

• Can you do everything we just went over? Be honest with yourself about your capabilities and knowledge.
• Do you WANT to do everything we just went over? Even if you can do it, do you have the time and desire to handle all these responsibilities?
• What is your time worth? Consider the value of your time and whether the hours spent on property management could be better used elsewhere.

So, what is the optimal approach to achieving the outcome you want?

For many landlords, especially those with busy schedules, multiple properties, or limited experience, the benefits of hiring a professional property manager often outweigh the costs. A good property manager brings expertise, established processes, and a network of reliable vendors, ultimately saving you time, stress, and potentially money in the long run by minimizing vacancies, handling maintenance efficiently, and ensuring legal compliance.

Our approach is to simplify your life, so you experience less stress, and more cashflow. If the thought of handling all the intricacies of property management feels overwhelming, consider partnering with experienced professionals who can handle the day-to-day operations, allowing you to enjoy the returns on your investment without the constant demands on your time and energy.