Rising interested rates, low vacancy rates, increased cost of living, unfair and non-transparent rental market, increasing rents, reducing yields and the list goes on.
Being a property investor is linked with lots of responsibilities. To be able to eliminate the burden of this task, landlords’ resort to having a property manager to look after their properties. However, there are some who choose to self-manage their properties. This is a smart and practical option especially if you have a property to rent but might not really be a good choice if you have multiples of private rental properties.
Reasons Why Landlords Should Self-Manage Property
If rental properties are not managed properly, these can fall into shambles. There are many possible ways on how to manage properties, but landlords choose to self-manage and are completely hands-on due to the following reasons:
- To Take Control of Everything
If you opt to self-manage the property, you will be responsible for everything that concerns your property. You will be the one collecting rents, fix your taxes and more. But as a private rental property owner, you’re also considered as a business owner, and when you decide to do it yourself, you know exactly what’s going on in all aspects of your property or business.
And since you are hands-on in all parts of management, you will be aware of the issues quickly. You’re able to see right away when problems are occurring. But because you oversee everything that concerns your property, note that you still won’t be able to address the problem right away.
- To Avoid Spending on Management Fees
Another reason why landlords must self-manage property is to avoid spending money on management fees. Usually, property managers charge a certain percentage of your rental income so if you decide to cut out the middleman; this could mean possible income in your pocket.
To self-manage property could also mean playing a bigger part in choosing tenants or connecting to those who want to lease directly from the landlord. The self-managing property allows landlords to look over the application forms and then speak with potential tenants themselves. Also, if you live locally, you’ll be available to tenants anytime they need you.
As the saying goes, if you wanted to do things right, do it yourself. Despite what property managers or letting agents say, they don’t necessarily have similar interests in the success of your own rental property as you do. Meeting potential tenants in person, carrying out verification checks, drawing own contracts and liaising directly with tenants; landlords can have the confidence and peace of mind knowing that their properties are properly handled.
Deciding whether to hire agents or self-manage property still depends on certain factors:
Can service the property, for example are you in the same region as your investment property, this is relevant while hosting open homes or inspections?
Can you organise repairs if required and or be available to the tenant if the need arises?
Instarent has the technology that automates all rental management tasks and processes, making it simple of both the landlord and tenant.
Time to take control of your biggest asset.
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Until next time and thanks for yours!