- Self-managing your rental property requires you to have the time, knowledge, and temperament.
- In order to successfully self-manage your rental property, you need to treat it like a business.
- Having a professional property manager on your side may save you time and money in the long run.
Should I self-manage my investment property or hire a professional property manager to do it for me?
This is quite possibly the most important decision a rental property owner has to make before placing a tenant. Here are four questions to ask yourself if you’re unsure which route is best for you.
1. Do I have the time to self-manage my Denver rental property?
As a landlord, you are on call 24 hours a day. Do you have the time available to make this commitment?
If you receive a call from an interested prospect while marketing your property but are unable to answer the phone and provide additional information because you're at work or busy with other things, then self-managing may not be the right strategy for you.
It's imperative that you have a fast response time with both prospects and tenants. Twenty-four hour availability is one of the benefits of having a professional property manager working for you.
Self-managing also means you're always on-call for maintenance issues that arise such as those 3:00 a.m. phone calls that your hot water heater went out. When you hire a professional property manager to manage your property, you as an owner won't need to deal with these issues.
2. Do I know the law?
This is a big one, and can be the deciding factor for a rental property owner to ultimately choose a professional property manager over self-managing.
If you decide to self-manage, intimately knowing the law is critical.
An example of knowing the law is fair housing. These laws are extensive and vary on a federal, state, and even city level. Do you know what the state and federal laws governing protected classes of people?
Additionally, if a prospective tenant asks if your property allows service animals and you answer incorrectly, you could unknowingly be in violation of fair housing as regulated by the US Departing of Housing and Urban Development (HUD) and risk serious legal ramifications.
These are just a few examples of the many laws self-managing landlords must understand.
3. Do I have the temperament to be a hands-on landlord?
While this question may not sound as serious as the previous two questions, it's equally valid.
As a self-managing landlord, you will be your tenant's main point of contact for EVERYTHING. This can be a bigger commitment than landlords initially realize.
It's important to be firm but fair when it comes to handling your tenants and to not get emotionally attached to the property or lose sight of the fact that your investment property is a business.
4. Do I have the knowledge to effectively operate and manage my rental property?
Do you know how to advertise your property or the pre-qualifying questions to ask before accepting an application? Are you aware of the proper steps to take when screening a tenant?
See our 7 Step Checklist for more information on adequately screening prospective tenants.
One of the many benefits of hiring a professional property management company is that they take care of the operational aspects a new landlord may not be prepared to handle.
Get Expert Property Management Support with Grace Property Management
If you feel confident that you have the ability to manage your property like a business, then self-managing might be the right approach. However, if any of these questions raise concern, hiring a professional may be the best solution for you.
Having an expert on your side can save you time and money in the long run. At Grace Property Management, we have more than 40 years of experience in the business, and are ready to help you succeed when it comes to property management. Drop us a message or give us a call at 303-255-1990.