When you’re trying to decide whether you want to manage your own rental property or leave it to a professional San Carlos management company, you have several things to consider. Obviously, there are pros and cons to both options.
Today, we’re going to take a look at why you might want to manage on your own, and why you might want to reach out to a professional. Every investor and landlord has a different set of priorities and requirements, so the best decision for you will really depend on a number of personal factors.
Professional Property Management Costs
The first concern that every owner expresses is about money. Yes, professional property management will cost you money. However, you spend money on professional services every day. You spend money when you have your car repaired or even washed. You spend money when you go to the dentist or when you decide to go out to dinner and have someone else cook and clean up for you. This is a trade-off in life in general.
You can do a lot of things on your own to save a few dollars, but what’s your opportunity cost?
Risks versus Savings: Professional Expertise
In California’s Bay area, managing your own investment property can be risky. There are a lot of laws, and those laws are generally written to benefit the tenant and not the landlord. If you do one thing wrong, even if it’s a simple and unintentional mistake, you could have a very high monetary cost, and the expense of property management will suddenly seem a lot less. Additionally, these laws are always changing, and it can be difficult to keep up with them and stay in compliance.
Consider Quality of Life
Hiring a professional management company to take care of your rental can also increase your quality of life. If you’re single and you don’t have any family responsibilities and you’re not working more than a few hours a day, you can manage your own property. You might find it easy and rewarding. But, if you have a family that needs you at home or an intensive job or things you like to do in your free time, hiring a property manager is definitely something you want to consider.
Professional Management and ROI
ROI is something else to consider. You can manage on your own and find a tenant on your own, but can you do it as quickly as a property manager? Can you find a high quality tenant like a professional manager can? We know how to screen and what to look for and how to set an accurate rental value for your property. We have tools and resources that self-managing landlords often cannot access when it comes to marketing and showing properties. Vacancy, pricing, and tenant placement have huge implications for your ROI.
So, ask yourself what the trade-off might be. Think about what you’re getting for the cost of professional management. A good property manager will give you more value than what you’re paying. If you’re currently using a property manager and you’re not getting that value, you should probably shop around.
There’s a lot more to talk about on this topic, and we’d love to tell you how we can help you have a better investment experience. Contact us at Five Star Property Management.