Key Questions To Ask Yourself:
Do I have time?
Do I have the temperament to deal with tenants?
Do I understand the legal requirements?
Am I willing to give up some control?
When real estate investors contact our office to get information about Denver Property Management, they are often deciding between hiring a professional property manager or self-managing their property.
To determine if you should self-manage or hire a professional property manager, you should consider these 4 questions:
Consideration #1 - Do I have the time?
Your time availability is critical when managing a rental property. You must always be available because anything can happen at any time. If there is any type of emergency, you must be available to fix the issue immediately. For example, you have to take care of showing the property, taking care of the vacancy, or being available for the 3:00 am water heater leak (studies show that water heaters only burst between 3:00 am and 4:00 am on weekends).
Consideration #2 – Do I have the temperament?
Most tenants are very good and kind people, but sometimes there are disputes or lease violation issues that must be addressed. You may rent a property to a tenant and have a “no pet” policy, only to drive by later and see a cat sunbathing on the window. Or, your tenant calls you and says that rent is going to be late this month. How are you going to handle situations like these? The key is to keep your problem-solving and communication methods professional. To be successful in property management you must be able to relate to and manage people as much as you manage the property. Anything can happen and finding the best solution for both sides is keeping a good temperament.
Consideration #3 – Do you have the knowledge?
In the last two years in Colorado, we have experienced more legal changes in the residential housing laws than in the last 25 years combined. Having the legal knowledge means understanding the laws that govern – who you can rent to, know what you can and can't ask through background screening, along with what to take into consideration. There are many residential housing laws that can be extremely costly if not handled correctly.
Consideration #4 - Am I willing to give up control?
A property management company is going to handle the day to day operations of the property. That may include making necessary repairs as needed. You must trust the judgement of the company you are working with as they do have a high level of control over the property and its expenses.
If you DO decide to hire a property manager, be sure to ask them about the 8 most important parts of the property management agreement. This will help you find the best property management company that is a good fit for you and your property.
We at Grace Property Management are always ready and willing to help in any way we can. Contact us at www.rentgrace.com or 303-255-1990.