Your first investment property comes with a big decision. Are you going to devote even more time after the sale to the property, or will you hire a company to manage the rental for you? There are benefits and drawbacks to both options, so let’s find out the difference between hiring a property manager vs. doing it yourself.
How To DIY
There’s no secret to why many people opt for the DIY route, as it typically saves you money. Property management prices vary, but the amount is usually around ten percent of monthly rent—and that adds up quickly. If you want to take on the responsibilities yourself, here’s what you’ll need to do:
- Find tenants
- Screen tenants
- Know landlord-tenant laws
- Collect rent
- Take care of maintenance requests
You can make these processes easier by using online services like Zillow rental manager, but doing it yourself requires a sizable time commitment. Learning the local landlord-tenant laws alone should take you a while—and you can’t ignore this step!
Reasons To Use a Manager
If you want your investment property to be an investment and not your new career, a property manager is probably right for you. Many people don’t understand the time commitment of being a landlord full-time and regret investing in a rental once they do.
If you want to keep your day job, don’t hesitate to hire a property manager. For most people, ten percent of each month’s rent is well worth the lack of time commitment and responsibility.
What To Consider
For anyone considering a property manager, consider this: once you let them take over, you should do your best to become uninvested in the happenings at the property. Otherwise, you may find yourself managing the property manager, which can result in a waste of your time and money. There are plenty of tips to hire a great property management company, so don’t worry about finding a good one!
Now that you know the differences between hiring a property manager and doing it yourself, figure out which option is best for you. Not everyone has it in them to be a landlord, and not everyone can sit back and not be a landlord! You know yourself better than anyone, so only you can decide.