Landlording can be an exciting adventure for some. It involves building a business to collect rent payment and generate income while providing housing to customers (tenants). Some landlords prefer to do everything on their own, and some prefer to take a more hands off approach and hire a property management company to do it all. And then there are some landlords that want to control some aspects of the business – like filling vacancies – while turning over other responsibilities – like maintenance and rent collection – to a property management company. In any event, hiring a property management company comes at a cost as they charge fees for their services. We’ll take a look at some landlording responsibilities and the pros and cons of doing it yourself or hiring a property management company.
As a landlord, there is nothing more important than getting paid through consistent on-time rent collection.
|DIY||+Know your tenant|
+Use online rent payment services like ClearNow & Cozy to simplify process
|-Deal with delinquent tenants|
-Need to understand eviction process
|Hire Property Management Company||+Enforce lease policies for late or unpaid rent|
+Use online rent payment services like ClearNow & Buildium to directly deposit owner proceeds
|–Pay property management fee typically as a % of rent collected|
Finding a tenant that will pay rent on time and keep your property in good condition takes time, so screening tenants becomes an important task.
|DIY||+Easy to screen without a site inspection |
+Credit & eviction reports help eliminate guesswork
|-Potential lack of experience with the application and screening process|
-Need to develop tenant onboarding method
|Hire Property Management Company||+Trained eyes to spot good tenant qualities & red flags|
+Established process from application to screening to lease signing
|– Pay property management fee|
Before you can collect rent payment, you have to fill your vacancy. In addition to tenant screening, knowing where and how to place your ads are important tasks to finding the right tenant.
|DIY||+Easy to list vacancy online with high-traffic websites like Zillow & Trulia.|
+Some rental property accounting software like Rentec Direct and Buildium includes listing features
|-Need to manage inquiries and property visits|
|Hire Property Management Company||+Expertise at rental marketing to fill vacancies quickly|
+Have local real estate knowledge to help set competitive rents
|-Pay property management fee|
Hiring a property management company to collect rent, screen tenants, advertise vacancies, and more will likely be based on finding a balance among effort, time, and money. If you can afford the expense of a property management company to free up time and reduce headaches, then that is a win for both parties. At the same time, many of today’s landlord resources have features that benefit both the property manager and owner, like ClearNow’s owner proceeds. As a landlord, you have choice to make the decision easier of whether or not to hire a property management company for your landlording needs.