When most people think of professional property management, they tend to think that, well, that it is only for the bigger companies or people with hundreds of units.  While this may hold some truth, there are plenty of examples where everyday people utilize the professional services of property management companies for just a few units.  Let’s break down the basics so we can get a clearer picture of the pros and cons of both sides.

The Full Cost of Managing Rental Property Yourself

Investors have the choice to manage their own properties as a way of cutting down on expenses. However, some investors will choose to hire a property management company.  This decision also has other variables, like if the property is out of state making the distance is too far for self-management. But, for this article let’s assume that the properties are close by.

Most beginner or novice investors make the mistake of looking at a rental property as a simple equation of rental Income – (expenses + mortgage) = profit.  While this is the basic idea for an investor, there are other factors to consider.

Start by looking at the responsibilities that a landlord will take on if they decide to self-manage the property. Keep in mind not only the monetary expense that is required but the time required as well.

Maintenance

Let’s face it, many tenants will not take care of your property the way they would if it were their own. Considering this, it’s safe to say that in many cases renters put more wear and tear on the property increasing the need for regular maintenance.  Personally, I have quarterly inspections written into my leases so that I can keep an eye on the overall condition of my properties.  Are there minor leaks?  Are the tenants maintaining the rules of the lease agreements, etc.  Taking care of minor issues quickly will help avoid costlier issues in the future.  It, in my experience, makes the tenant feel that they have a landlord that cares about their needs as well.

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