If you’re wondering whether to hire a property manager or do it yourself, we have some property management tips that may help you decide.
Managing Your Own Rental Property: Time
The first thing to consider is time. Time is money, and if you decide to be a DIY landlord, you need to think about the value of your time. Be prepared to take all the maintenance calls from your tenants 24 hours a day. You’ll need an invoicing system where you can look up previous work orders and schedule vendors. Most professional property managers have software systems that can take calls and organize online repair submissions. This helps to execute the work quickly. You don’t want a flood at your property while you are on vacation. That will cause damage to your asset and trouble for your tenant.
Hire a Property Manager: Costs
Allocate about 10 percent of your rental income to pay for a professional property management fee. However, this is a tax write-off, so it actually comes down to about five percent of your rental income. Determine whether that will work for your cash flow.
DIY Landlord: Expertise
Think about who is the best expert when it comes to finding and placing a tenant. You need to follow state and federal fair housing laws. There are a lot of legal liability issues that can arise when inexperienced landlords look for tenants. You need to be up front and honest with your qualifications, and you need to treat all applicants fairly and consistently. A professional manager can find you someone who is qualified. Remember – a tenant who has the money today won’t necessarily be able to pay rent throughout the life of the lease. You need to know how to properly screen and qualify a tenant.
Professional Sacramento Property Management: Technology
Statistically, owners find they will make more money using a property management company. You’ll get a more qualified tenant who pays rent on time, and your overall cash flow will actually increase over the life of your asset.
Time is always my main consideration when I’m deciding whether to do something myself or use a professional. If you have any questions about Sacramento property management, please don’t hesitate to contact us at HomePointe Property Management, a HomeRiver Group company.
