The value of property management, don’t go it alone! Managing your investment seems simple – and it can be – until something goes wrong.
The reality is that not everyone has the skills, time and temperament to successfully manage their own investment. More and more investors are deciding that their time is worth more, or better spent, on other priorities.
Experience has shown us that real estate investments that are self-managed by private landlords are targeted by tenants with poor records. Evictions, judgement defaults and other problems are less likely to be discovered by a private landlord because they are less likely to have access to industry databases used to discover these issues and prevent payment problems before they arise.
Also, private landlords can be slower to see the tenant danger signs and may fail to nip problems in the bud.
Some are too understanding for their own good, letting unpaid rent add up and being slow to initiate eviction proceedings. However, it's not always a tenant issue – sometimes landlords fail to live up to their obligations when it comes to repairs and maintenance issues, prompting tenant anger.
Still thinking of going it alone? Ask yourself these questions before you decide to manage your own rental:
Do I understand all facets of tenant and landlord law?
Am I organized and a detailed record-keeper?
Do I know the going rates in today's market, and have the confidence to implement regular rent increases?
Do I have access to quality, reliable and licensed trades people that I can trust?
Do I feel comfortable with the tenant having my phone number, and being on call to them 24 hours a day?
How will I verify that tenants are who they claim to be?
How will I find out if tenants have previously been evicted or have a poor payment history?
Will I be organized and assertive enough to collect late rent immediately?
What am I going to do to manage my rental if I go on vacation or become ill?
Could I bring myself to evict a family, or a person who has fallen on hard times?
Do I have the time, expertise and confidence to go to court and publicly argue my case, if necessary?
How much will I save, after tax, by managing my property myself?