Why Hire a Property Manager Instead of DIY?

Some property owners are excellent candidates for leasing and managing their own properties, whether they have the education, experience, or just plain guts to do it. However, more often than not, property owners get in way over their heads. Here are some points to consider when determining if you want to brave handling the property management or if you’d rather let the professionals take care of it for you.

 
Pricing 

 
If you are going the DIY route you will end up deferring to friends and family first to get an idea of what your property may rent for. Or you will find yourself scouring Craigslist or the newspaper to try and figure out “what’s the going rate?” If you work with a property management company they will take on the search burden and guess work off your shoulders. They would have comparable market data to give you a more accurate rate based on location, subdivision, and property specifications as compared to other properties that closely match the criteria. With so many factors to consider it is important to get the right rent rate in the beginning so you can reduce your vacancy, push revenues, and start collecting rent checks more quickly!

Advertising  

Sure, anyone can jump on Craigslist and post an ad or pay the local newspaper to run an ad. But property management companies most often have an extensive advertising source list of places they advertise properties. With additional exposure you will undoubtedly get more traffic on your property and hopefully lease it more quickly. And on top of that, there is typically no additional expense to the property owner to utilize the company’s advertising options- it’s built into the price of leasing!

 
Showings 
 

Unless you are retired or have a super flexible schedule, one of the most time consuming aspects of property management is showing the property to prospective tenants. It is critical that your schedule allows for showings when the prospect requests a visit- that’s right, you are working around the prospect’s schedule! If not, they will just move onto the next property and you will potentially miss out on a qualified tenant. Property management companies are staffed to accommodate these last minute requests and have coverage for evening and weekend showings. We all know how precious time is! 

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Qualifying Tenants

 Many property owners are downright scared when it comes to “picking the right tenant” and we can see why! There is a lot to juggle- laws that ensure you are not discriminatory, guidelines to make sure the applicant meets the criteria, and expenses for doing your homework. This can be an overwhelming step in the process of leasing your property. Property management companies are educated on current laws, understand the most important criteria, and have the cost-effective resources to thoroughly conduct a background check. It is an instant relief to know that a professional can handle this step for you by running credit and criminal reports, verifying employment and income, and verifying prior landlord references, all at a much lower cost that doing it on your own. 

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Rent Collection 
 

The second biggest time sucker- collecting the rent! Obviously this is the reason you have a rental home, so you can get paid. Even when you have qualified tenants in place sometimes things happen and you end up having to chase down your rent payment. Providing options for how your tenants can pay (i.e. standard mail, drop-off, online payment processing) has a direct impact on delinquency. Also, knowing your rights and the consequences to the tenant for non-payment is another HUGE reason to entrust your property to a pro. They can handle filing a detainer warrant, hiring an attorney, going to court, getting a judgment and/or possession of the property back, if things go south.
 

Tenant Relations

Even when you have a great tenant that pays their rent on-time there are situations that can arise that require your attention- the water isn’t hot enough, the fence gate is broken, the roof leaks, the neighbors are noisy, etc. Although most often these kinds of complaints are simple to address it is a balancing act of compassion and business. Having a property management company representing you, the property owner, ensures your best interest and the investment are top priority. Of course, the tenant will always be taken care of, but this way you are not put in an awkward position and you can rest easy that no fair housing or property laws are being violated.

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Vendor Relations
 

Many property owners are handy men or women and can take care of their own property maintenance and repairs. However, that is not always the case and the rest of us are left wondering who to call?! Property management companies typically have either an in-house maintenance division or have access to quality vendors that can fulfill your property maintenance and repairs. This means that through their relationships you are getting not only quality, professional, vetted help, but the discounts they receive are passed right along to you!

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These are just the fundamentals of property management that either a property owner or property management company handles day in, day out. There are always more complex, atypical situations that come about from time-to-time. Although, this information may seem to be geared towards using a professional to handle the leasing and management of your home, the objective is to give you a great understanding of the good, bad, and ugly of property management. This way you can make an education decision before you jump in feet first.

Please note that we do not receive commission in anyway for the promotion of content from other websites/blogs. The intent and purpose of all information in this post is merely for reference.