Many investors buy rental properties with the idea they will handle the rental property management. They figure it is a way to save money and increase profits. This idea makes sense about rental property management isn’t for everyone.
A lot of work goes into managing rental properties. The job grows even bigger if the property has multiple units or you manage a portfolio of properties. It can quickly get overwhelming.
This post will cover some of the pros and cons of DIY property management as opposed to hiring a professional.
Pros and Cons of DIY Rental Property Management
Pros
The most obvious benefit of DIY property management is that you do not have to pay a property management company. Most companies charge a monthly fee depending on their services and property size. If you do the work yourself, you don’t have to pay this monthly expense.
Another benefit is that you get to be more hands-on at your property. When you work with a property management company, you are less involved, and there may be some compromise. Doing the work yourself means you get to do everything your way. You don’t have to rely on anyone else to do the work for you.
Cons
The top con is how much time the owner must dedicate to property management. It is a full-time job that often requires odd hours. Along with collecting rent, you must take emergency calls, handle maintenance, balance the books, etc.
Another con is that you have to handle all aspects of tenant management. It can be stressful and emotionally taxing. Many interactions are pleasant, but it isn’t always the case. You might need to deal with things like unpaid rent or lease violations.
Landlords must abide by housing laws and respect the rights of tenants. You also need to know what you are and are not allowed to do when you have problems with tenants. Learning the ins and outs of local laws and regulations can be another issue. It is a lot to learn, and the consequences of being wrong can be painful.
DIY property management can also keep you from other, more beneficial uses of your time. As an investor, your time is better spent searching for and acquiring new properties. If you choose DIY property management, tasks like vetting tenants and handling service calls will take over your daily life. With so much time going to management, there could be opportunities lost.
