If you have never owned a rental property before, the thought of doing so can be as tantalizing as this:
Rental Income – (Mortgage + Expenses) = Profit
What is not often factored into the equation is the actual management—or what you could call landlord duties.
On the face of it, managing property may seem like a breeze. But don’t be fooled. It’s nothing like shooting fish in a barrel. Looking for tenants to lease the houses, chasing rental payments, and addressing the maintenance aspect can be nothing short of time-consuming, if not overwhelming.
If you are a real estate investor or buyer, you have two options when it comes to managing your property. You can either DIY (self-manage) the property yourself or appoint a third party professional (property manager) to look after the property for you. The question of which between the two makes for the better option has no right or wrong answer. It all depends on an individual investor’s circumstances.
To best tackle this question, perhaps it would be nice to outline the advantages and disadvantages associated with each, then leave the final decision to you.
The best thing about managing your own property has to do with the fact that you get to save on property management fees.
There is a saying that goes, “If you want something done well, do it yourself.” This applies in the case of rental properties, as being the owner of the property, you can manage it better than anyone else could.
Self-managing the property also means you have a bigger say on tenant selection. You can personally evaluate the application forms and speak with the potential renters yourself.
Since the property is yours, you go the extra length to ensure it is tenanted. Meanwhile, property managers have multiple properties to manage, meaning yours will not always be top priority.
Keep reading the article “Professional Property Management vs. Self-Management: A Look at the Pros & Cons” by Nasar Elarabi:
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