One of the biggest concerns after purchasing a rental property is its management. You may have considered managing the real estate on your own, but some limitations may prove that hiring an Orlando property management company is the better choice.
Looking after your rental property on your own can have its advantages, but there are also disadvantages that you should know about. Weighing in on the following pros and cons can help you make this big decision.
Pros of Managing Your Own Property
The most obvious advantage of not hiring a professional Orlando property management company is you can save a ton of money. Quite clearly, you will need to pay for the services of the property manager you plan to hire. The costs of managing your own property will depend on a variety of factors, but it will typically involve at least three percent of your total rental income.
On the other hand, if you choose to hire a professional to handle the managerial tasks, the monthly services can gobble up to ten percent of the entire rent. There are even companies in the city that ask for the first month’s rent whenever they find a new tenant. That said, some companies are well worth their price.
Aside from the financial benefit, you will also get one intangible gain when you self-manage the property, and that is the experience. If you plan to manage the rental building on your own, it is vital that you understand all the basics of property management. There is no better method to achieve that than by working as the manager for your rental.
Additionally, as you gain experience, you can use your expertise to evaluate a property management company in case you decide to hire one in the future.
One more advantage of looking after your property without the help of professionals is that you will have full control over your real estate asset. You do not have to rely on another person or double check whether he or she is doing their job or not. When you gain that sense of responsibility toward your properties, it will help you if ever you invest in more buildings after a few years.
Cons of Self-Management
Becoming the manager of the property you own can be truly demanding. The job entails a wide range of functions to ensure that the rental home remains in good condition and the tenants are happy at all times. In general, you will need to do the following tasks:
Finding Tenants: Perhaps one of the biggest duties you will ever encounter is finding new renters for the property. You surely do not want the rental units to be vacant so you have to look for them. You also need to make sure that they know about your property, which means you have to advertise it in different sites, create flyers, and buy ad spaces if you have to.
Looking for good tenants and avoiding bad ones require a system. This step is crucial since it can have a serious impact on your property and your cash flow as well. You need to screen them properly and be meticulous at choosing them, so you land a responsible tenant.
Collecting Rent: These days, you can collect your tenants’ monthly rents online. Checks are still common though but more important than the method of payment is to make sure rents are paid on time. Owners of the property usually have day jobs so you may be delayed in collecting the payment. It can become a habit, particularly for your tenants.
Taking Care of Legal Matters: Although you own the property, it does not mean you can do whatever you want. Self-managing the real estate also entails following specific laws in Orlando property management. You should also acquire some special document, such as standard business permits. Additionally, you should be aware of eviction laws, tax rules, and your responsibilities for your income property.
There are still many tasks involved, so you should consider whether you have the time in the world to accomplish those everyday jobs associated with being a landlord.
In most cases, the property you have just bought may need some renovations. If this is your situation, you have to be ready to allocate time for all the work involved, such as getting bids, shopping for materials, and making some tough decisions. Surprisingly, it will cost more than you think and a lot longer, too if you do everything on your own.
Why You Should Hire a Property Manager
It is true that you have to pay for the services of the property manager. If you choose to self-manage, you can indeed save money since you will not pay yourself for the tasks you accomplish. However, hiring a professional will save time.
The price of the property manager’s service can be worth it, mainly if you cannot afford to waste time. For instance, you have a day job, and you may not be able to find some tenants for your vacant units. Each day that the units do not have occupants cost you your income. Instead of waiting to get your hands free so you can start your search, you can just hire professionals to do the searching for you.
Another reason why you will benefit from hiring a property management company in Orlando is that you can have extra time to invest in other properties. You can use this fantastic opportunity to expand your real estate investment portfolio, which would then result in increased rental yield.
Being a landlord and taking care of the needs of the property and tenants will always involve a lot of hard work. You will be faced with issues that can cause you major headaches, especially if you have problematic tenants. Additionally, repairs and maintenance work can be quite demanding for you if you have a full-time job.
A professional property manager can save you from all these nuisances. You do not have to be stressed about your property and dealing with your tenants. You can trust that the company you hired will perform the duties set for them with flying colors, that is of course, you hired the right property management company for the job. For more guidance on this, read our guide on how to hire the right property management company.
The problems that you will typically face when you self-manage will not be present if you choose a professional company to supervise your property. You do not have to concern yourself with these obligations because the manager will take care of them all for you. In doing so, your overall workload will be significantly reduced and you can de-stress as well.
While it is undoubtedly possible to manage your property on your own, professional services may be more suitable for you, especially if you have no extra time on your hands.
How to Choose an Orlando Property Management Company
Management duties often require experience and skill so they can be executed flawlessly. If you are searching for a company that will take care of your rental property in Orlando, you have come to the right place.
With our professional services, you can get the assistance you need in maintaining your rental property and keeping all your tenants happy.
We will facilitate all the management facets your rental home will ever need, from finding suitable tenants to collecting their rents to paying attention to their complaints and requests. Let us help you take the stress out of owning a rental property.