Owning a rental home is a great way to earn a passive income. Managing a rental property, on the other hand, poses challenges that not everyone is equipped to deal with. So how do you decide whether to self-manage or hire a property manager for your Littleton rental home? To better help you make your decision, answer these four questions!
When to Hire a Property Manager
Do You Have Enough Time?
Managing a rental consumes a lot of time. It easily turns into a full-time job. So if you’re juggling another career on top of trying to be a landlord, it’s easy to get lost in the scope of work that comes with managing a rental. It’s why property managers exist to begin with! So ask yourself realistically: do you have enough time to devote to your Littleton rental? Can you show it between tenants at the drop of a hat? Can you schedule, manage, and complete repairs? Do you have the time to communicate effectively with tenants or deal with emergency maintenance issues, even in the middle of the night? Do you have the time to chase down unpaid rent? If the answer to any of these is no, it’s time to consider hiring a property manager.
Are You Ready to be Hands-On?
Right up there with having enough time to manage a rental property is having the skills and patience to be hands-on. Are you ready for the mounting tide of tenant communication? Do you have the ability to form a professional, business-like relationship? Are you capable of having the challenging tenant conversations while remaining firm and fair? Being hands-on means getting involved in both the good and bad parts of managing a rental, from listening to tenant complaints to tracking down unpaid rent payments.
Do You Have Enough Knowledge?
Experience plays a big part in successfully managing a rental property. After all, a landlord needs to be familiar with all of the various laws that govern rental properties, including those at the federal, state, and local government levels. Not to mention these laws are constantly changing as new circumstances arise, from additions to the protected classes for Federal Fair Housing laws to how much time a tenant must be provided with to correct an issue before an eviction can be filed. Then there is the knowledge that comes with working in the field daily. This is where a property manager can be a huge help. They have a wealth of knowledge and experience that most DIY landlords just don’t.
Do You Have Enough Resources?
The number of moving pieces involved with property management can be daunting. From collecting rent charges and holding security deposits to dealing with repairs, both routine and emergency, a landlord needs several resources to fall back on. Knowing who to call when things go wrong is important. Do you have a list of licensed, insured, and reliable vendors for every maintenance need? Do you have a real estate attorney to contact for drafting leases and addendums or for helping with legal issues? How about a network of other investors or real estate agents? Part of working in the business of property management is building the right resources, which every professional property manager should have. It’s one of the bonuses of hiring a pro!
There are plenty of pros and cons to both self-managing a rental and hiring a property manager. The biggest thing to consider when making that decision is what works best for you. And should you decide it’s time to hire a property manager, Real Property Management Colorado is here for you! Our team of experts is ready and waiting to help you realize your real estate investment goals.
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