Self Management vs Property Manager: What Are the Differences?
About 36% of households in the U.S. are renters. Now is a great time to be a landlord if you already own property that you’re ready to rent out!
If you’ve never rented out a property before, you have to make the decision between self management vs a property manager. Which is the right choice? What’s the difference anyway?
Like all things, your chances for success are higher when you’ve got professionals like Michael Teys with a wealth of experience in the real estate market on your side.
Let’s talk about it! Read on to learn about these two management options so you can choose the right one for you.
What Is Self Management
Self management, in the context of real estate investing, means that the landlord/property investor manages their own property instead of going through a third party.
The landlord is the only person responsible for the “behind-the-scenes” work associated with maintaining the property (though they may hire contractors for odd jobs).
Pros and Cons of Self Management
The biggest pro of self management is that you don’t have to pay anyone aside from the contractors you hire (if you choose to do so). Because you’re taking care of everything, all of the rental money goes right into your pocket.
You also get full control over your property. You don’t have anyone else advising you on what tenants you should allow in, how you should run your property, or anything else. It’s all up to you.
If you only run a single property, especially if you still live there, this is often the best choice.
On the downside, if you own more than one property or you have a very busy schedule, self management can turn into a lot of work fast. If you’re not up-to-date with all of the current fair housing laws, you can also get yourself into a fair bit of trouble without having a professional team to support you.
What Is a Property Manager?
A property manager generally works with a full property management team. The property management team takes care of a lot of the “behind the scenes” work that goes into being a property investor.
Property managers take care of things like marketing, tenant screening, collecting rent, scheduling maintenance, and more.
Pros and Cons of Using a Property Management Service
When you use a property management service, like https://certainmanagement.com/the-best-property-management-new-orleans-has-to-offer/, you create almost passive income. Many people think that being a landlord is passive income by default. This isn’t the case.
While you have consistent cash flow as a property investor, you have so much to do (especially with multiple properties) that it can turn into a full-time job. A property manager will take over those tasks for you so you can focus on work or just relax.
Property managers also protect you from legal trouble because they keep up with local laws and regulations.
They can help you fill vacancies in a flash so you aren’t ever missing out on income.
The downside, however, is that you do have to give a percentage of your rental income to the property manager. You also may not have as much control over your property as you’d like.
Self Management vs a Property Manager: Which Is Right for You?
When it comes to self management vs a property manager, it usually comes down to how many properties you own. If you live in the building that you’re renting out, or if you’re only renting out one single-family home, you can get away with doing it alone.
If you have multiple properties, you may want to use a property manager.
Which is right for you?
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