Self-managing your rental properties vs hiring a property manager pros and cons
Self-managing your rental properties vs hiring a property manager pros and cons.
Today I want to talk candidly about property managers and whether you should or should not be using a property manager for your rentals so if you don't own any rental properties and you're thinking about buying a rental and you want to know whether or not you should be using a property manager I think that the answer for most people is that, YES!, they should be using a property manager. If you feel like it's going to be a huge burden to have to deal with you know maintenance issues and you know the classic toilets, tenants and termites then you might want to hire a property manager if you live out of state and you're not able to go check on the property on a regular basis you should definitely hire a property manager.
There are a lot of laws that heavily protect tenants and if you're not very familiar with what kind of things you are and are not allowed to do with the tenants and what types of notices you need to give and all that then you might want to hire a property manager. Now, if you're a more seasoned investor you own multiple properties and you want to consider managing them yourself I do have several clients that do manage their own properties and they do it very successfully and they're very happy with it and they're very happy that they get to keep that extra money that they would have otherwise paid to a property manager. So I do think that it can be right for some people just make sure that you're doing your homework on you know how to you know to send out notices of you know new leases and notices of late payments and collecting late payments and some of the legal rights like for example some landlords think that they can just show up on the property anytime they want because they own the place but that's not the case you have to provide tenants with appropriate notice when you want to go do an inspection of the property there's just a lot to consider.
Now, if you do want to hire a property manager I have a couple of fantastic ones who I can recommend to you and just to give you a ballpark idea different property managers are different and some of them do slightly different things but for the most part they're going to handle everything for you you're never going to contact the tenant you're never going to have to inspect the property you're never going to have to worry about whether you know the payments and it hasn't been received on time does this notice need to be sent out to the tenant they're going to handle all that stuff they'll market the property get it listed find and place the appropriate tenant that has the right qualifications for you and they're usually charging somewhere around eight percent of whatever the lease is so if you've got a property that's a thousand dollars a month then which that would be amazing if you have a property that only leases for a thousand dollars a month pretty much everything is more expensive than that now but just hypothetically then your management fees on that would be about eighty dollars a month so make sure you're factoring in management fees into your projected cash flow when you're looking at buying a rental property.