If you want to learn how to manage rental properties, you can save yourself a bunch of money compared to hiring a property manager. Yet, you can make your life easier with simple automated tools, like property management software.
However, if you are an uninformed DIY landlord, you can end up making several costly mistakes. In which case, you end up doing all the work AND not saving yourself any money. Consequently, good property management makes a difference.
1. Manage Rental Houses Successfully: Keep Property in Great Shape
First of all, remember to treat real estate like an investment. In order to keep its value from declining, you need to keep the property in good, working condition.
This means getting dependable renters who will take good care of your property and not trash it. Knowing how to screen tenants will pay off in terms of more income and less headaches.
In addition, you also need to maintain the property. For example, hire a gardener for regular landscape upkeep and schedule routine inspections like roof, gutter, chimney, etc.. Proactive measures will often prevent larger damage from building up.
2. How to Manage Your Own Rental Property: with Help
Second, even if you want to manage your rental properties yourself, consider using services or getting part-time help that can save you lots of time. For instance, property management accounting can get confusing – not to mention take hours of your time.
Why not use a tax accountant to complete your tax returns and help with deductions? Or maybe use a software program like Quickbooks to keep an organized ledger? In either case, the expert knowledge you gain can often help you save more money than you invest in the service.
Note: Because property management does not always happen at a desk, Buildium developed a mobile app to manage rental property. Whether you are on the road or the property site, business still happens. Get it for both iPhones or Android phones.
The app goes along with their rental property manager computer software that helps landlords with accounting, online payments, 1099 filing, maintenance tracking, property inspections, document storage, rental applications, tenant screening, rental listings and more. (Especially helpful for managing multiple rental properties!)
How Hard is it to Manage Rental Property?
In short, if you want to manage rental property yourself, plan on needing a lot of skills. For example, bookkeeping, home repair, negotiation and sales. Good property managers also need to be effective communicators, well-organized, patient, willing to learn and problem solve.
Using a professional can provide the advantages of expertise, time savings and you may even sleep better at night. On the other hand, being your own property manager while hiring out only for specific services can give you a little more income while at the same time a little less work.
And who knows, you might find out that you want to learn how to start a property management business. Then, with your acquired skills, you can earn even more money managing rental properties or vacation homes for others. (And if you read below, you’ll know how much to charge too!)
How Much do Property Management Companies Charge to Manage a Rental?
According to AllPropertyManagement.com, you can expect to pay a property manager about 8-12% of the property’s monthly rental value. Of course, plan to pay any additional expenses that accrue, such as repairs or maintenance items.
The same cost typically applies whether you hire a realtor/real estate agent or professional property manager to do the job
DIY Landlord VS Hiring a Property Manager
Although a manager can handle much of the legwork for you, (including communicating and negotiating with tenants), the monthly fees ultimately reduce your rental income. Is the cost worth it, or would you rather learn how to manage a rental property yourself?
Keep in mind that you can more easily oversee a nearby rental than one out of state or located a long distance away. Managing a rental property remotely or online can prove to be more challenging.
In these situations, having reliable, trustworthy tenants is crucial. Plus, you want to know a local handyman or repair service that can handle property problems should they arise.
How to Self Manage Your Rental Property: The Start-Up Guide
Do you want a step-by-step guide on how to manage rental properties? Successful landlord Shannon Pineau has written the book on it, How to Buy and Manage Your First Rental Property. You can download it in pdf format or to your Kindle as an e-book.
Additionally, if you have a vacation rental property that you want to manage yourself, take some tips from Sandra Shillington. She wrote the book on how to successfully rent out your home or spare room using AirBNB.
Her guide includes lots of templates and checklists to follow. Plus, in addition to how to manage rental properties, she shows you how to write engaging listings and hw to price your rental for maximum profit.
She also shares tips on preparing the property, efficient housekeeping and getting raving reviews. (A worthwhile $10 investment).