How to Choose the Best Management Option for Your Rental

Posted in Blog  
  on Jun 14, 2016

When you choose to invest in a rental property, one of the many decisions that you will need to make is how you will manage it. Some of that will depend on the location of the property versus where you live and how actively you wish to be involved in your investment. The decision between hiring a property manager and managing the property yourself is one you will need to weigh carefully, and to help you with that, LandlordStation has gathered some helpful articles for each scenario to help make sure that you have all the information in front of you that you'll need to get you on your way to making an informed decision.

Hiring a Property Manager

  • Timing - You may be having trouble deciding if you need a property manager or not. There are pros and cons to hiring someone to help and to choosing to tackle the project on your own, but a lot of it boils down to timing and knowing when it's the right time to hire a property manager.
  • Individuals vs Comapnies - If you decide that you want or need to hire someone to help, one of the next decisions that you'll need to make is if you would prefer an individual or a company to handle the day-to-day work of property management.
  • Know What to Expect - Part of deciding if it's time to hire a property manager is knowing what you should expect from a property management company. Not only will this help you decide if you need help in these areas, but it will help you understand what you should be looking for in a property management company if you start interviewing them.
    • Knowing How Much a Property Management Company Will Charge - A property management company or single property manager should be able to provide you with the details on how they charge for their services, but this article should give you a general idea what is commonly charged.
    • Make Sure They're Insured - If you have never run a property management business for yourself, you may not know what they should be insured for. Make sure that any company that you hire is covered.
  • Social Media and Property Management
    • Social Sites Property Managers Should Be On - Social media is a great way to do some checking into a property management company before meeting with them. You can get a general idea of how they do business and what they focus on.
    • Online Reputation - If the property management company is online, you may find out a bit about their reputation by looking through that information and what others have said about them. Keep in mind that one disgruntled customer does not necessarily mean that they run a bad business.
  • Know When It's Time to Switch - When you hire a property manager, the assumption is that it will make your life a little easier. If tenants start reaching out to you or you have trouble contacting your property management company, it might be time to look about hiring a different one.
  • Legally Terminating a Contract - It's a good thing to remember that a property management company works for you. Even so, you likely will have a contract with them, so if you decide that you need to split ways, make sure to do it legally.

 

Managing Your Own Property

  • Full-Time Property Management -  Many landlords choose to manage their rental properties on the side of their main job, but there may come a day when you consider jumping into property management full time. Make sure you're ready.
  • Being Your Own Property Manager -  If you choose to tackle the property management side of your rental business alone, there are a few things you should be aware of.
  • Build Your Understanding - While you will learn many lessons simply by managing your rental property, you will not want to neglect the research that goes into taking on this responsibility. There are several great books written on the subject of property management that can help you find your best approach.
  • Research - Part of taking on the property management side of your rental business is doing to research for a new property. If you handle the research correctly and detail out what you need to know about the area surrounding your investment, you can take your property management business to the next level.
  • Accounting - Proper and detailed bookkeeping is a must for any landlord and property manager. Check out these five tips to help you keep everything in order so that nothing slips through the cracks.
  • You Don't Have to Do Everything - Just because you choose to take on your own property management doesn't mean that you have to tackle every single job yourself. There are certain things that may be a bit easier to delegate out.
  • Think about Property Management Software - One way to ease the burden off of yourself as a single landlord and property manager is to invest in property management software. This can help you in everything from tenant screening to marketing to rent collection.
  • Network With Other Property Managers -  Learning from your own mistakes can be expensive in the property management business, but if you choose to network with others that have been in the business longer you may find ways to avoid more common mistakes.

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