How should you manage rental properties? Is it better to just delegate everything to a property manager or self-manage your rental properties? The answer: self-manage. Ok – have a good night. Be sure to tip your server.
Seriously, though, I strongly recommend self-managing your rental properties if at all possible. Let me explain why.
Self-Manage Rental Properties: Why it’s better
Let’s roll back the clock. There I am at my home office. It’s day 1 of my real estate investment career, and I knew exactly how everything was going to turn out.
The plan was simple. I buy properties, hire a property manager to deal with tenants, and I would sit back and rake in the cash. My thinking seemed completely reasonable. I mean how could it not be – I had no prior real estate experience and had barely purchased my first rental property.
Fantasy Is Replaced With Reality
So, my first purchase as a real estate investor was a cute little two bedroom home that I actually bought from my father. At the time, I was living near Dallas, Texas, and the property was located in Springfield, MO, so hiring a property manager seemed like the best decision.
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So, I found a Springfield-based property manager, signed an agreement with them, and they went on a search to find me a tenant.
Well, it didn’t take long for me to start realizing that hiring a property manager wasn’t exactly a “hands-off” solution.
A few months later, when I decided to fire the property manager and self-manage my rental property, I realized that self-managing rental properties takes up just as much of your time as hiring a property manager to manage your rental properties.
So, where’s the benefit to self-managing? There are two main benefits, in my opinion: 1) you’ll acquire better tenants faster, and 2) you’ll learn how to save costs on maintenance requests. (Continue reading…)