Hiring a Property Manager vs. Self-Managing: What's Better?

Deciding to hire a property manager or do things on your own to manage your rental property business depends on a variety of factors including your availability, level of experience, personal situation, and financial considerations.

We at McKenna & Vane Property Management put together this article so you are aware of the advantages and disadvantages of each and serve as a guide in making an informed decision.

Property Management Duties

New investors think that the equation for a rental property is straightforward. Just deduct the expenses and mortgage from the rental income and you should know your profit. While this formula is a good starting point, you also need to factor in the general responsibilities and efforts required as a landlord.

Investors have the option of managing their rental properties themselves or hiring a property management company to take care of these duties.

There are landlord responsibilities that need to be handled if you self-manage or hire the services of a property manager. Such tasks could cost you money and require you to devote your time to fulfilling them. Knowing these can help you decide which choice is most beneficial to your portfolio.

Property Maintenance

Taking care of urgent repairs and regular upkeep is part of owning a rental property. Rental homes demand more effort from the owner or property manager to maintain because tenants have the tendency to do more damage to a home than owners do.

In order to keep your tenants happy, your gutters from overflowing and keep the appliances in working order, you must schedule seasonal maintenance. Additionally, you must attend to any urgent maintenance requests from your tenants. Having an efficient maintenance management system in place will allow you to maximize your profits.

Dealing With Vacancies

You need to find the next tenant for a rental property even before it becomes vacant. It takes more than just posting a listing on online platforms to find your next tenant.

You must schedule property showings, speak with potential tenants, and meet them for viewings. Renter applications must be processed, tenant screenings must be completed, and future tenants must be approved.

Additionally, you must prioritize tenant screening. A thorough tenant screening is necessary in having a more stable rental income stream. You should check a renter's credit report, criminal record, and history of evictions as part of this process.

You should also confirm their income and contact references and previous landlords. You will have the best chance of avoiding an eviction by following a consistent and comprehensive screening process.

Tenant Management

A good landlord checks in with their renters at least once every three months. This check-in may include seasonal maintenance reminders or just a casual conversation on how things are going at the property in general. If there is indeed a problem, it is your responsibility to resolve them.

Occasionally, you may also receive a call from a renter with a valid complaint. Other times, a tenant may call you about issues that are actually within their control. Regardless of the reason, you will be the tenant's main point of contact for any issues related to your property. A good landlord-tenant relationship is always best for your rental.

Rent Collection

Collecting rent is crucial when managing rental properties. It entails collecting rent from tenants, every month. It requires constant follow-up, tracking payments, and handling instances of late or unpaid rent. It also entails understanding legal obligations, local laws, and industry standards.

There may be circumstances when you need to handle disputes. It may require presenting comprehensive documentation, participating in discussions, or even initiating legal action.

Collecting rent in person could mean handling cash which can be unsafe. It may also compromise your privacy if tenants have access to your home to make payments. That’s why it’s important that you have an established tenant screening and rent collection process with various payment methods to avoid chasing payments.

Lease Management

You are in charge of ensuring that your tenants abide by the terms of the contract. You must abide by state housing laws such as quiet time, pet policies, and smoking policies. You have to take action against any lease violations, which may involve warnings, penalties, or even eviction if necessary.

Additional Landlord Responsibilities

The tasks listed above are just a few of the core responsibilities you need to handle as a property owner. Other duties include:

● Housing law enforcement and compliance
● Turnovers
● Inspections
● Rent increases or pricing management
● Evictions and dealing with holdover tenants
● Insurance
● Taxes

Advantages of Hiring a Property Manager

● Saving time: Whether your landlord work is just a side gig or a full-time commitment, property managers take care of a variety of tasks to cut down on time you'll have to spend on it. These includ property marketing, tenant screening, managing repairs and property upkeep, collecting rent, and dealing with tenant complaints. You have more time for other pursuits when you hire a property manager.

● Experience: Property managers are knowledgeable and experts in managing properties. They are well-versed in market conditions, and local laws and regulations. They can offer advice on determining rental rates, pooling prospective tenants, and improving the efficiency of real estate.

● Tenant Management: Property managers enforce lease agreements, tenant screening, and, if necessary, evictions. They can respond quickly to tenant problems or crises and ensure timely rent collection because they have established processes in place for each task.

● Maintenance and repairs: Through their network of professional contractors, property managers can easily handle maintenance and repairs. They take care of routine inspections and make sure the rental home is maintained.

● The option of working remotely: Employing a property manager enables you to manage your properties remotely, without having to be physically there, if you own them in several areas.

Bottom Line

Owning a rental property is an ideal strategy to increase your equity and diversify your investments.

Knowing all the responsibilities involved in keeping a successful rental property can help you decide which option is best for your rental business and lifestyle, whether you decide to self-manage or delegate management responsibilities to a property manager.

Hiring a property manager is recommended if you would like to spend your time on other aspects of your life, lack knowledge, or have properties spread across several areas. Self-management, on the other hand, enables more control and personal engagement at a lower expense.

The best choice for you will be determined by evaluating your personal and business needs, resources, and preferences.

If you need a reliable property manager in Maryland, you can rely on McKenna & Vane Property Management. We specialize in single-family homes, multi-family residences, or condos. We are committed to maximizing your profits and providing you with stress-free rental property ownership experience. Contact us today!