Should You Hire a Property Manager, or Manage Your Properties Yourself?
If you’re like many property owners (and aspiring property owners), you know that property managers exist – but should you hire one, or would you be better off managing your property yourself? This guide will help you make the right decision.
Should You Hire a Property Manager, or Manage Your Properties Yourself?
When you own a property and have tenants, you have two options: You can manage the day-to-day operations of the building, or you can hire someone else to do it for you. If you hire someone else, they’ll need to be a qualified property manager.
So what’s better?
It depends on your personal preference, your ability to make time to manage the space, and your ability to handle the paperwork.
Pros and Cons of Hiring a Property Manager
Hiring a property manager means you don’t have to worry about the “heavy lifting.” Actually, you don’t have to worry about much at all aside from paying for repairs when they’re necessary. The caveat: You have to pay a property manager from your proceeds. Many property managers charge a percentage of the rent you collect on the property, so if your rent goes up, the manager’s fee does, too. However, some property managers charge a flat per-unit rate. You can shop around to find the right property manager.
Your property manager will:
- Help you find and screen tenants
- Collect rent and deposits (and return deposits when tenants move out)
- Handle maintenance requests, including coordinating with repair contractors
- Conduct regular property inspections
- Take action against tenants who don’t pay rent or stick to the terms of your lease
- Handle the eviction process if it becomes necessary
- Send you tax forms from the collection of rents and fees at tax time
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Pros and Cons of Managing Your Own Property
If you choose to manage your own property, all the things a property manager does become your responsibility. If you have the time – and the inclination – to do so, go for it! However, a lot of people find that running their own household and another house becomes pretty difficult; it can be very time-consuming, especially when you’re looking for tenants and trying to screen people who want to rent your place.
One major concern with managing your own property has to do with vetting tenants. Fair housing laws apply to landlords, and property managers know the laws inside and out. Most homeowners don’t, though, and that can spell trouble if you mistakenly – or are perceived to – discriminate against someone.
Eviction is a tough one, too. When a landlord wants to evict someone, they must take the tenant to court. The process can be lengthy and complicated, and it takes a lot of time. Most property managers are very experienced in evictions, and they know the ins and outs of the system. If you manage your own property, you’re also on your own when it comes to hiring an attorney to handle the eviction process for you. (And in that sense, an eviction could cost you a significant amount of money.)
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