The way a rental property is managed can make the difference between a successful and a struggling rental business.
Should you hire a property manager or should you self-manage your property?
In this post, you’ll learn the difference between the two options to help you in making the right decision for your Antelope Valley property.
Why You Should Hire a Property Management Company
There are many benefits to hiring a property manager. That said, you can only guarantee these benefits if you hire the right person for the job.
1. You can enjoy lower vacancies.
A vacant property basically means no income at the end of the month. As a result, you may be unable to pay for things like property repairs and maintenance.
From the experience professional property management companies have, they can offer proper marketing strategies to help you in finding quality and potentially long-term tenants.
2. You will free up your time.
Landlords have many responsibilities. They have to, for example, advertise their rental properties, screen prospective tenants, inspect their properties, and resolve all tenant issues.
If you don’t have the time, it may be best to hire a professional property manager.
3. Your property will become legally compliant.
The rental property business is one that is guided by many laws. From the Federal Fair Housing laws to the security deposit laws, it can be easy to get overwhelmed.
A property management company will be up-to-date with relevant laws, ensuring that your property is legally compliant.
What to do When Hiring a California Property Management Company
How do you find the right property management company to hire?
- Ask for referrals from your friends and family.
- Conduct your search on trusted websites like the National Association of Residential Property Managers and the Institute of Real Estate Management.
Next, interview them. Ask your applicants questions like:
- How long have you been managing properties in the California rental business? Look for companies that have been in the business for at least five years.
- On average, how many tenants do you evict per year? Look for a company that has a low eviction rate. Ideally, this should be below 5%.
- How many tenants renew their lease? If a client is satisfied, chances are that he or she will renew their lease. As such, look for a property management company that has a lease renewal rate of at least 80%.
Why You Should Self-Manage your California Rental Property
Do you:
A) Have the skills, experience, and resources to manage tenants?
B) Know for instance, how to advertise and screen rental applicants?
C) Know what the Federal Fair Housing laws entail?
Are you knowledgeable about the California landlord-tenant laws?
If you answered yes to the previous questions, then you may be able to self-manage your rental property. The following are some of the benefits to self-managing:
1. You’ll maximize your rental income.
The goal of any real estate investor is to maximize their rental income. If you self-manage your property, you won’t have to pay for property management fees, increasing your rental income.
2. You’ll have direct control of the management of your business.
Since you’ll be self-managing your property, it means that you’ll take part in the daily operations of your rental business.
You’ll have complete control over things like rent collection, maintenance issues, and property advertisement.
What to Do to Become Your Own Property Manager
You need to have the experience, skills, and resources to become your own property manager. You also want to be able to draft a solid rental agreement that includes all important terms.
There is no direct answer when it comes to deciding whether you should hire a property manager or self-manage your Antelope Valley property. Your decision should be based on your individual needs and skills.