“Should I manage my property or should I hire a property manager?”
This is a common question that many Florida rental property owners ask.
That’s because the way a rental property is managed can make all the difference to its success and profitability. Deciding who takes care of the property is an important decision.
Generally speaking, self-managing your property is better for those who have the time, skills, experience, and resources. Without any of these, self-managing your property can be very difficult and unsuccessful.
On the other hand, some property owners may decide to hire a property manager to take the responsibility off their hands so that they can enjoy their returns without having to deal with the hassle.
In today’s blog, we are going to compare the advantages of each option to help you make the right decision for your Broward County property.
Why You Should Hire a Property Manager
A property manager can help you in the following areas:
1. Time
Do you have the time to manage and respond to any issues related to your rental property?
Having adequate time is key.
Aside from tenant issues, you need ample time to carry out annual inspections and market your vacant units.
A property manager can help you in this regard. You will have more free time because of the tasks and responsibilities the property manager will take care for you.
2. Vacancies
Every day that your property stays vacant will cost you money.
A property manager has the necessary tools and strategies that will help get your property the exposure it needs to be rented as quickly as possible.
3. Network
Who knows the ins-and-outs of the rental property business better than a property manager?
A good property manager will have directly managed a few dozen properties in his career. During this period, they will probably have made relationships with suppliers allowing them to get you better prices on materials, contractors, and services.
4. Money Management
An experienced property manager will be able to keep your property’s finances in order. Among other things, he or she will ensure that rent is collected on time and that operational expenses are handled properly.
5. Legal Backing
The landlord-tenant relationship is one that is guided by many laws. From the Federal Fair Housing Act to habitability laws to security deposit laws, understanding them is crucial.
A good property management company is knowledgeable on all rental property-related legal matters.
Hiring a Property Management Company
Hiring the right property management company can be very beneficial for you and your rental property. That said, no two property managers are created equal. As such, always do your due diligence prior to hiring one.
To improve your chances of selecting the right manager, you need to be cautious. Ideally, you want to ask your local apartment association or colleagues for some recommendations.
You also want to look up professional directories on the World Wide Web. Visit the website of the Institute of Real Estate Management (IREM) and search for “find a professional.” Or alternatively, visit the website of the National Association of Residential Property Managers (NARP) and search for “property managers.”
Ideally, you want to ask them questions such as:
- How do you market your clients’ rental properties? Look for a property manager that uses a variety of marketing strategies, from email and social media marketing to the use of “For Rent” signs and newspaper ads.
- Can you guarantee occupancy? One that can guarantee occupancy will likely have a good tenant screening process.
- What percentage of the tenants you manage renew their lease? As a baseline, look for a lease renewal percentage of no less than 80%.
- What is your average eviction rate? Look for a property management company with the lowest eviction rate. Broadly speaking, choose one that doesn’t exceed an eviction rate of 5%.
- How successful are you at retaining owners? If the company is retaining most of its clients, it essentially means that they are doing a good job. As such, look for an owner retention rate of more than 97%.
- How long have you been in the property management business? The longer a company has stayed in the business, the richer the experience they have.
Why You Should Self-Manage Your Rental Property
By now, you probably know that being a landlord isn’t just about collecting rent at the end of the month.
Managing your property can help you in the following regard:
1. Management Fees
Property management companies obviously charge for the services they offer.
That could have a an impact on your bottom line, especially if you are just getting started.
That said, you’ll be responsible for all the tasks related to your property which means that you will have to invest more of your time in the property’s maintenance.
Good examples of these tasks include property advertisement, tenant-screening, property upkeep and maintenance, and legal matters.
Only you know how much your time is worth and wether you would value the helping hand of a professional.
2. Day-to-day Decisions
If you decide to self-manage your property, you will have complete control over the day-to-day running of your business.
You’ll be able to make all the important and minor decisions that comes with managing your own investment property.
That means overseeing everything from how to advertise your vacant unit, which contractors to hire, and how to collect rent from your tenants.
If the idea of overseeing these details gives you peace of mind, that might be the only convincing you need.
But keep in mind that quality property managers like Florida Property Realty would be able to provide you with reports and updates that would give you control over every decision made.
Self-Managing Your Rental Property
If you decide to manage your property yourself, make sure you familiarize yourself with the landlord-tenant law as well as the fair housing rules. You should also learn how to draft a solid lease agreement, it’ll become very useful in the future.
There you have it, some of the differences between hiring a property manager and self-managing in Broward Country Florida.