Want to manage your own rental? DIY Property Management can be simple, until something goes wrong!
The reality is that not everyone has the skills, time and temperament to successfully manage their own investment. More and more investors are deciding that their time is worth more, or better spent, on other priorities.
Experience has shown us that real estate investments that are self-managed by private landlords can be targeted by tenants with poor records. Evictions, judgement defaults and other problems are usually not discovered by a private landlord because they are less likely to have access to industry databases used to uncover these issues and prevent payment problems before they arise.
Also, private landlords can be slower to see the tenant danger signs and may fail to nip problems in the bud.
Some are too understanding for their own good, letting unpaid rent add up and being slow to initiate eviction proceedings.
It’s not always the tenant’s fault – sometimes landlords also prompt anger by failing to live up to their obligations when it comes to repairs.
Still not convinced of the value of professional property management? Ask yourself these questions before going it alone:
Do I understand tenant and landlord law?
Am I organized and a great record-keeper?
Do I know going rates in the current market, and have the confidence to negotiate regular rent increases?
Do I have access to quality, reliable and licensed trades people?
Do I feel comfortable with the tenant having my phone number, and effectively being on call to them 24 hours a day?
How will I verify that tenants are who they claim to be?
How will I find out if tenants have previously been evicted or have a poor payment history?
Am I organized and assertive enough to collect late rent immediately?
What am I going to do to manage my rental if I go on vacation?
Could I bring myself to evict a family, or a person who has fallen on hard times?
Do I have the time, expertise and confidence to go to court and publicly argue my case, if necessary?
How much will I save, after tax, by managing my property myself?