Should I hire a property manager?
Buying a rental property is not the only difficult part of rental real estate investments. When the buying process is complete and tenants have moved into the building, one of the most common questions people will ask is whether they should act as the landlord or hire a property manager. Managing a building can be difficult, especially when you have more than 4 tenants to handle.
First, you need to think about the renovations to the property. it will cost you a lot, and you will have to be in charge of the whole process. This means that you will shop for the materials if the renovations are minimal, or hire construction workers and supervise them to make sure the renovations are done correctly. Keep in mind that the renovations will probably cost you a lot and they may take you longer than you expect. If you are planning on managing your own property, you should hire a professional to do the inspections so you won’t buy a home that requires major renovations.
What are the pros and cons of managing the property yourself?
Managing the property on your own will allow you to take complete control on the tenants, keep a perfect relation with them, service all the issues in the property and keep better watch of your real estate property. It also saves you much of the rental income needed to pay the property manager for the services. If you make enough money, you can use this as an opportunity for a full time job.
Because you won the property, you have a bigger incentive that the property manager, this means that you will do your best to keep the property rented and have long-term tenants. You will have information on all activities in the building including vacancies when the tenants leave. When you handle the re-leasing process, you can save up to a whole month’s rent since you do not need to pay for someone to handle the property.
There are many negative things about handling the rental property yourself, renting the property during vacancy is probably the toughest and most time consuming part about being a landlord. You will need to find a renter fast through emails and online advertisements. You will also need to interview the potential clients through video calls, one on one interviews and meetings to see who the best fit is.
You will also need to show the property to the potential tenants, keep in mind that you must deal with people who will book inspection and not show up. You have to review all the applications, credit and income report in order to select a legally fit candidate for the home. finally, when you get the client you are required to prepare a lease with all the regulations and terms for living in your property. the lease is finalised and signed when you receive the security deposit and make the repair s to the home.