One of the key decisions landlords must make is whether to self-manage their property or hire a professional property management company.
This guide outlines the differences between the two options to help you choose the one that best suits your needs. We’ll also cover the benefits and challenges of each, giving you a clear understanding of what’s involved.
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Property management vs. self-management
When you choose property management services, you’re bringing in a team of experts to handle everything – from finding tenants and collecting rent to managing maintenance and staying on top of legal requirements. They take care of the day-to-day tasks, keeping your property in great shape and tenants happy.
Alternatively, with self-management, you take full responsibility for all aspects of managing your property. This includes advertising, tenant screening, rent collection, handling repairs, and addressing tenant concerns. While self-management may save on property management costs, it often requires a considerable amount of time and effort.
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The benefits of property management services
Choosing a property management service can bring significant advantages for landlords. Here’s how it can make a difference:
Expertise and experience
Our property management service brings a wealth of experience in the property market. We’re familiar with tenant laws, rent collection, and maintenance, helping you avoid common mistakes and ensuring smooth operations.
Time-saving
With a property management team handling daily tasks, you can focus on other important priorities. No need to deal with tenant calls, repairs, or regulatory changes – everything is taken care of.
Tenant screening
One of the key benefits is the thorough tenant screening process. The property management team will conduct background checks, verify employment, and review rental history to find reliable tenants, reducing the risk of issues down the road.
Marketing and advertising
Property management professionals know where to market your property to attract quality tenants. They also ensure the rent price is competitive, so your property is rented quickly without underpricing it.
Regular inspections and maintenance
Routine inspections and ongoing maintenance are part of the service, helping to keep your property in excellent condition. This proactive approach can prevent larger issues from developing later.
While there are costs involved, the convenience and expertise provided by a professional team often outweigh the fees. The support and peace of mind you gain can make the investment well worth it.
Related: Why landlords are considering switching to a managed let
The costs of self-managing your property
Self-managing a property can initially seem like a cost-effective choice, especially if you’re trying to save on property management fees. However, it’s important to consider the hidden costs that come with handling all aspects of your property yourself.
Maintenance costs
Maintenance is one of the biggest costs in self-management. While skipping management fees might seem like a quick way to save, repairs and upkeep can quickly add up. You’ll have to find reliable contractors, negotiate prices, and make sure the work is done properly. If you’re not familiar with property maintenance, it’s easy to end up spending more than you planned, especially if urgent issues come up.
Missed rent payments
Collecting rent on time is key to keeping your cash flow steady, but late or missed payments are a common challenge for landlords managing their own properties. Dealing with overdue rent can take up a lot of time and might even require extra steps to recover the funds. If rent is missed for a long period, it could cause cash flow issues or lead to more serious steps like legal action.
Tenant turnover costs
When a tenant moves out, the costs of finding a new one can add up. Advertising the property, screening new tenants, and handling any necessary repairs or cleaning can take up a lot of time. If you face delays in securing a new tenant, these costs, both in time and money, can quickly pile up.
Legal fees
As a landlord, you need to stay on top of various legal responsibilities, from tenancy agreements and deposits to eviction procedures. If you’re not keeping up with the latest regulations, it can lead to costly mistakes. Legal fees for non-compliance or disputes with tenants can quickly add to your expenses if you’re not up-to-date with the latest laws affecting rental properties.
Related: Handling maintenance requests remotely: Strategies for success and peace of mind
Is self-management right for you?
Self-management might work for landlords who have the time, expertise, and desire to handle all aspects of property management themselves but can become a burden in the long run. If you own multiple properties or simply don’t want to be bogged down by the day-to-day responsibilities, hiring a professional property management company may be the right choice. The property management team handle the operational side of things, freeing you to focus on growing your property portfolio or pursuing other investments.
Related: How to create an inventory
Making your choice
Deciding between property management and self-management depends on your situation, available time, and comfort level with managing the complexities of renting. Professional property management can offer convenience and expertise, while self-management might save you money upfront if you’re willing to invest the time and effort. For tailored advice on the best option for you, contact your local Parkers branch today.
