Perla IrishLearning how to manage a vacation rental property is a long process that requires extensive experience.
This makes deciding whether to use a rental property management company a tough decision.
Also, some rental property management companies are more thorough than others, and even if you plan to use a management company, you need to be aware of potential hangups.
This article discusses why you might want to handle property management by yourself instead of using a company.
Additionally, you also might want to consider running maintenance on your property. If you have experience handling real estate, it might not make sense to lose your profit to an outside source.
However, if you’re new to the real estate business and haven’t owned property before, you might want to consider using a rental property management company to get your feet wet.
You Live Close to the Rental Property
If you live close to your rental property, you might want to handle the logistics yourself. However, just because you live close doesn’t mean you won’t want to address any logistics yourself.
Looking for a vacation rental property means that you try to find the most profitable location, regardless of whether you live there.
If you don’t live there, you need a rental property management company to take care of the little things such as cleaning after guests, yard upkeep, and other administrative duties.
You Don’t Own Too Many Investments Properties
If you don’t own a ton of rental properties and you live nearby, you might want to manage the property yourself, so you don’t have to worry about paying for someone who you don’t know.
Suppose you only have one or two rental properties. In that case, you might consider gaining experience rather than relying on an outside company to take care of all your logistics.
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You Have the Time
Becoming a landlord requires time and dedication. If you already have a full-time job plus a few investment properties, it can be exceptionally challenging to manage your properties yourself.
However, if you want to be a full-time landlord or have ample time on your hands to ensure your properties stay in good condition, you may not require rental property management services.
You Want Maximum Profits
If you don’t want property management companies eating into your margin, you should consider undertaking the work yourself.
These companies can charge exorbitant amounts and steal significant portions of your monthly rental income, and you can wind up paying for different expenses if you need to add new tenants.
They can also charge advertising fees and hit you with charges for showing the property to potential investment properties, processing new tenants, or bonus fees for finding new tenants.
Rental property management companies can take up to 50% of your first month’s rental income.
You Have the Experience or Are Willing to Learn
If you already have experience managing properties, you might not want other companies handling your affairs.
Once you know how everything works, you won’t need to deal with rental property management. You will understand how to deal with vacancy, cash flow, or tenant issues, and you won’t need to rely on a company to direct you.
An easy way to do this is by seeking a mentor who already has real estate experience. In times of need, you can enlist the help of a local landlord.
Learning from experience only can be detrimental, and you shouldn’t expect to know everything right away.
You Don’t Want to Be Liable
Relying on professional property management means you’re putting your liability in someone else’s hands.
Many property management companies put a “hold harmless” clause in the contract, meaning they can’t be held liable for any accidents that occur. This means the owner gets held responsible.
If you’re going to use a rental property management company, make sure they have to take responsibility for their actions or negligence. The last thing you want is to be held liable for something that wasn’t your fault.
You Have a Higher Motivation.
If you feel like you’re going to be able to take care of your investment property than any rental property management company, then you should try to forego hiring one.
Doing so requires you to carefully weigh the pros and cons of hiring a property management company.
If you find that you have the time to undertake these operations, avoiding a property management company should suffice.
You Can Fulfill Multiple Responsibilities At Once
If you feel like you can wear multiple hats and fulfill different roles within your property management scope, you might not want to spend money on an outside company.
There are many facets to property management, and you should consider whether you can vacillate between owner and property manager.
You Take the Middle Man Out of Maintenance
If you have high-quality skills in maintenance, there’s no reason for you to spend on costly maintenance specialists and maintenance technicians.
When deciding whether you want to manage your property by yourself, you should consider how comfortable you feel with maintenance and other aspects of your property management needs.
You Want to Rely on the Internet
You might be able to figure things out on your own if you have some experience managing properties and understand how to use the internet to your advantage.
There are plenty of free resources available on the internet, and you can figure many of the essential maintenance fixes on the internet as well.
When choosing whether you want to use a rental property management company, you should consider how many of their resources you need vs. what you can accomplish on your own.
Deciding what to delegate and what to take as your responsibility will give you a better idea of how extensive your rental property management company should be.
Conclusion- Why You Shouldn’t Use a Rental Property Management Company
Choosing whether you need a rental property management company comes down to both your property’s needs and your circumstances.
For example, if you’re out of town all the time and you have a property in an old building, you might want a professional service to keep an eye on it while you’re gone.
Additionally, if you have a tough time finding tenants, you might want to enlist the help of a property management company. However, it’s crucial to find a rental property management that doesn’t place the liability on you.
