Here are three common property management options for rental property owners:
1. Do It Yourself Property Management:
Many owners of rental properties begin by managing their properties themselves. Many owners end up managing their own properties for months or sometimes even years. Self-management usually works best for retired property owners who have experience in a trade and can take care of the routine maintenance issues that arise when managing a rental property.
Many do it yourself property managers end up hiring a professional manager when issues arise that are difficult to resolve on their own including filing a vacancy, rent collection, eviction, or ongoing maintenance issues.
2. Hire Out Key Roles:
Certain aspects of managing a rental property are commonly contracted out and handled by third parties even among do it yourself property managers. These roles include accounting and tax functions, legal work, and maintenance issues requiring a licensed plumber or electrician.
One important tip when hiring out key roles is to make sure that any vendors you select are insured and licensed to do the work that you are hiring them to do.
3. Hire a Professional Property Manager:
Owners who want the benefits of owning a rental property, but don’t want to deal with the hassles of property management often chose to hire a professional property manager to handle the day to day aspects of managing their rental property. While professionals realize that their time is worth more than their investment in a professional property manager, other property owners appreciate the peace of mind that comes with knowing that a professional company is managing their property and able to handle all aspects of rental property management. For absentee property owners, having a reputable company you can trust helps take the worry away in knowing that your investment is being cared for.
Whatever option you chose in managing your rental property, make sure that you avoid the 10 Common Mistakes for Do It Yourself Property Mangers.