There are many advantages (and disadvantages) of managing your own property, just like there are when engaging a property manager. But which option should you choose?
Do I really need a property manager?
Advantages of a property manager
Although it will cost you to engage a property manager, they can save you a lot of time and stress when it comes to handling the ongoing responsibilities. Your property manager will have the experience to manage your property without any issues. Keeping your property well maintained, conducting inspections as well as keeping up to date with the property market and legislation.
Disadvantages of a property manager
The biggest disadvantage of having a property manager is the cost. Property management fees are usually a percentage of your rental income, which can be a large slice of your investment income. Also if the property manager is not in regular contact with you it may raise alarm bells.
Advantages of self-managing
The biggest advantage of self-managing your property is the financial savings. Property management fees are usually a percentage of your rental income. So if you cut out the middle person, the property manager, it will leave more of the rental income in your pocket.
Disadvantages of self-managing
Managing rental properties requires a few different skill sets and can be an intense time burden, especially if you have other commitments like a job or family. Finding suitable (and reliable) tenants, being on call for emergencies and repairs, property inspections and all the paperwork that comes with it is no easy feat. It also means that you will be dealing with difficult issues like evicting tenants or demanding rent payments, even court appearances when necessary.
With so many facets to take into account when deciding to use a property manager or manage it yourself, you could save money by doing it yourself or save time and stress by hiring a property manager.