Managing your own rental property might seem like a no-brainer, and, for many people, managing their own rental property is a great alternative to utilizing property management services. If you’re new to the rental property industry, then you’re probably wondering exactly what you need to know about managing your own rental properties. In this article, we’re going to dive into the world of rental property to show what should be considered before managing your own properties.
1 – How Much Time is Invested?
For many people, rental property income gives them a way to enjoy a certain lifestyle. Retirees and millennials alike often look for property investment opportunities that will give them a more flexible lifestyle and steady income. If you’re looking for a hands-off rental income opportunity, then managing your own property could pose a few challenges. For instance, tenants don’t always call during business hours, and when they do call, it’s often because they need you to coordinate something quickly. You’ll also be investing time in drawing up documents, taking care of bookkeeping and taxes (unless you outsource), repairs and collections.
2 – What Resources Should I Have On-Hand?
When a tenant calls and they have a burst water pipe in the middle of the night, do you know who you’ll call? You’ll need to have a list of local contractors who are willing to come out around the clock.
3 – How Many Properties Do I Have?
If you have more than one property, you could find yourself stretched a bit thin at times. Have a plan to manage multiple properties efficiently and effectively.
4 – Do I Live Close Enough to My Property?
The distance between you and your property can define your success as a property manager. You’ll need to be available virtually around the clock, meaning that you’ll need to be there in case of an emergency. Plus, you’ll want to be able to do inspections and walk-troughs without having to travel a long distance to do so.
5 – Am I a Good Multi-Tasker?
As a property manager, you have a relationship to uphold with your tenant, and you also keep in close contact with contractors. You’ll need to be prepared to switch gears and take on a different role at a moment’s notice. For instance, you are responsible for accounting, billing, collections, maintenance, and everything in between.
6 – How Well Do I Handle Stress and Change?
As a property manager, you have to brace yourself for change. Things can be going great with a tenant that you’ve had for years, and then, out of nowhere, you have to place your property on the market again. Mother Nature strikes, accidents happen, people move out. All of these things happen, and ultimately, you are the one who carries much of the burden.
What Every Investor Should Consider Before Managing A Rental Property
If you don’t shy away from these considerations, then managing your own rental properties could be a great fit for you. By managing your own property, you save money and handle the goings-on of your property on your own. You get to make all the important decisions, and you get to run your rental property like a business. Property management is extremely rewarding for those who enjoy it. If you’re considering managing your own property, then think about the above points. If you’re still all in, then being your own property management is probably the best way to go!