Whether you manage your property or hire a manager is an important decision to make as an investor. Many often shy away from hiring a property manager, afraid that it will cost a little too much, or that they will not know what is happening with their rental property.
However, they don’t take into account the benefits it may bring. In this article, we discuss the pros and cons of hiring a property manager vs. DIY landlord, and highlight a few real world examples in America.
To many, the idea of managing their own property is incredibly appealing as it provides them full control over investment decisions. You also obviously get to save the management fees, but the control it gives is the primary motivating factor or why owners chose to manage their own properties.
It also completely eliminates the fear that your property is being mismanaged. However, it can all become a little too hectic for one person, especially if you have multiple properties. Here you may save on the manager’s fees but may end up spending just as much and more on fuel (to drive from one property to another).
You will also have to keep track of all the properties, tenants, maintenance, and repair requirements of each as well as go through extensive property marketing and tenant screening processes. Dealing with difficult tenants can be particularly challenging, and you may be at a loss for how to make them co-operate.
You may think you have more control, but you may, in fact, end up mismanaging and decreasing the return on your investments.
The difference between the landlord and property manager is that the latter is an expert and the former a novice. Property Managers are not only well-aware of the ins and outs of property management but also have a lot of contacts to help through challenges like dealing with difficult tenants.
Property Managers are not only well-aware of the ins and outs of property management but also have a lot of contacts to help through challenges like dealing with difficult tenants. They can help owners with legal procedures like filing taxes, drawing up lease contracts, and handling evictions. This property manager in New York has a good list of these service examples on their website.
One of the significant benefits of hiring a property manager is the amount of time it frees up for the owner. You can relax and enjoy the benefits of your investments. In fact, contrary to popular belief, hiring a competent manager can significantly increase the returns on your investments. You will no longer have to worry about listings, and tenant screening processes as the manager will do it for you if they are truly professional and successful. There is a pretty good source here talking about what makes a successful property manager.
The only drawback to hiring a property manager is that you may no longer feel as in control of your investments as you did in the past. However, sometimes giving up control is good for your brain and the body. It alleviated a substantial amount of burden from your shoulders, so you can focus on looking for other properties to invest in.
In the pros and cons of hiring a property manager vs. DIY landlord, the former definitely wins as a manager offers a lot more benefits to the property owner and really minimizes the risks.
It doesn’t stop there, you also need to look at the differences between property management companies because they are not all the same and don’t offer the same services. VS Realty in Jacksonville, Florida has a cool chart on their home page which highlights some differences between them and others, and you should look at sources like that to differentiate what company to hire, if you do go that route.