Many new landlords with several properties or one large property to manage instantly choose to work with a management company instead of doing their own DIY property management. This is not always the best choice.
Becoming a DIY landlord is something that tends to happen naturally most of the time, but you might want to consider doing it by choice. It is true that it is virtually impossible to manage your own property without a staff if you have over 20 units to manage, however you can manage that staff yourself. You don’t need a company.
It can be challenging to be a DIY landlord when you first start out, but as you do this, over the years it will become second nature to you.
How a DIY Landlord Gets Started
Most people start out with just a few properties and do not even consider hiring a management company. However as they grow larger, they think of hiring a company. Even if you grow larger, you will find that you can handle your own property management if you hire a couple of employees.
DIY Property Management Over Professional Property Management: Increasing Your Bottom Line
Managing your property yourself can save you money in the long run, and it can make you more money as well. Management companies take a huge chunk of your profits every year, usually in the range of 20% to 50% per unit. Then they add additional fees that should be included in their commissions already, like unexpected maintenance charges, overtime, abused apartment turnover cleaning and outdoor maintenance with the changing seasons.
In addition, a lot of property management companies refuse to rent to some people because they don’t meet a certain criteria. As a hands on DIY landlord, you can meet people yourself and decide if they are a good rental risk. Many people don’t meet rental agency standard restrictions but will be good tenants and will pay you money on time for many years to come.
Managing Large Properties the DIY Way
Managing large properties yourself with a staff of people can be a rewarding experience. You are a team and you make your own rules. Your property will soon become a community that thrives and grows. You will spend your days helping families and hard working people find homes. If you have more than 10 or 20 units, you’re going to need help with maintenance, repairs and some clerical things.
You will never experience this when you hire a management company and you will make less money.
Professional Property Management Over DIY Managing: The Challenges You Will Face as a DIY Manager
Being a DIY property manager can come with struggles if you are not prepared. Some people learn the business from others, but most just buy property and start managing without any real training or experience. If you are planning to buy a property, all it takes to make DIY managing easier is to read one or two basic books on the subject. This will help to get you ready for all of the things that will come along with your new business including money management, tenant screening, local housing codes, advertising, leases, managing maintenance teams and even acquiring new properties.
If you do some basic reading and know what to expect, being a DIY property manager will be much easier.
Professional management is pretty easy going in, however it’s a really good idea to make sure you have a lawyer review all of your contracts before they are finalized. Once the papers are signed, you will not have to do much of anything but collect your check every month. This is enticing to some people however, you might be losing thousands of dollars every month that could be in your pocket.
Why You Should Consider DIY
Whether you started out reading a guidebook or not, doing your own property management becomes much easier over time and many people find it to be a genuinely rewarding experience once they’ve got the mechanics down pat. If done right, you will feel like you’re running your own bed and breakfast, meeting interesting people at different points in their lives, helping them get to their personal next stages or even keeping them as lifelong tenants.Questions? Comments? Contact DIY Property Manager!