So you want to be a landlord – and a real estate manager.
Sure, income properties remain as a winning investment. But if you already have one or three, perhaps you’re trying to manage the property yourself. But are you really ready for DIY property management?
A landlord property management company knows the ins and outs of how to handle operations at an income property and can take a load off your shoulders and even save you money.
Here are some problems you might run into if you try to go it alone…
A Missing or Inadequate Lease Agreement
Do you know everything that should go into a residential lease agreement? You can be sure that a property management company does.
You may have a “good feeling” and a handshake agreement with a tenant, but it can burn you down the road. A lease is a legally binding agreement that outlines the monthly rental rate, conditions that need to be followed, how the deposit is handled and more. (And by the way, make sure you get that security deposit.)
Without one, you don’t have much of a leg to stand on if the tenant decides to cause you trouble down the road.
When a tenant decides to leave, they can do so with little or no notice (another reason to have a lease agreement.) In any case, you might not have the time or expertise to attract a quality tenant, meaning the property might be vacant for months, eating your profits.
A landlord property management company can help you properly prepare and advertise the home, which can cut down on how long the home stays empty. They also know how to adjust the rental rates according to the local rental market.
Dealing With Repairs
Referring back to that lease agreement – make sure you outline who is responsible for any damage to the property from neglect and whether they can renovate the home in any way.
Regardless of who is financially responsible, you may find yourself getting calls to check on a noisy fridge or a leaky faucet every week. And you may or may not have the skills to fix it.
A property management company usually has a list of bonded contractors they can turn to that can handle maintenance and repairs on your behalf. And it might be cheaper than doing the job yourself, especially if you botch it or ignore regulations.
Less Time For Everything Else
If you think you’re saving some money by avoiding hiring a landlord property management company, think again. It can end up costing you more than money – it can take up your time. From responding to complaints to making trips to pick up late rent checks, your family and personal time can take a hit.
Hire a Landlord Property Management Company
Having an experienced landlord property management company on your side can save you time and money, while also helping you avoid legal pitfalls from an improper lease or not following local regulations.
Find out more about how you can avoid DIY property management problems by contacting us today!