SHOULD YOU MANAGE YOUR OWN RENTAL PROPERTY?
There comes a point where your investments can suffer without adequate professional management. In general, you wouldn’t trust your mutual funds to an inexperienced but willing neighbor or friend, yet too many investors are willing to place valuable assets—their rental homes—in unqualified hands. In retrospect, many seasoned investors consider self-management one of their biggest mistakes.
THE SPECIALIZED PROPERTY MANAGEMENT SOLUTION:
Here at Specialized Property Management, some of our most appreciative clients used to self-manage their properties or used cut-rate discount shops before they realized their investments would perform better if they were better managed. Many of them learned the hard way that it wasn’t as simple as they’d hoped, and are now happy to leave it to the full-time professionals.
Put simply, a professionally managed property will get you a better return and help you avoid costly mistakes and missed details. Unless you enjoy late night maintenance calls, dealing personally with tenants and continual unexpected interruptions, you are wise to save yourself both time and money with professional management.
SELF-MANAGEMENT: ARE YOU QUALIFIED?
The second, and more important, consideration, is whether you are qualified. It is essential that you take a realistic look at what successful property management truly entails–it’s so much more than picking up a rent check. To be successful, you must understand every aspect of the property management cycle, so if you are not already an experienced property manager, take the time to learn the complexities of the business. Don’t cut corners. In addition to education requirements required by some states, invest the time and efforts necessary to master the requirements of trust accounting, all applicable regulations and codes, the systems and processes needed to avoid vacancies and cash flow issues, the marketing efforts that are most effective in your area, cost-effective maintenance resources, your customer service plan, and requirements for the collections and evictions process.
SELF-MANAGEMENT: DOES IT REALLY COST LESS?
Which brings us to a common question for new rental property investors: do you save money managing the property yourself? The first question is whether you have the time, and what your time is worth. Proper management requires continual attention and around-the-clock availability. For instance, if you earn $100,000 per year and work five days a week, 50 weeks a year, your hourly pay is $50 an hour. Administrative and maintenance help on your property generally will range from $10-25 an hour, so if you are accustomed to making more than that, it makes more sense to hire out. Smart investors know: Never perform work below your pay grade.
Specialized Property Management pays for itself in reduced vacancies and mistakes.
So, if you only save money in the end, why not back your investments with a veritable army: maintenance specialists, leasing agents, trust accountants, tenant service coordinators and highly experienced property managers?
Put our team, experience, and ethics to work for you.