DIY Management vs. Property Management: A Brief Analysis
Updated: Oct 15, 2022
So you want to invest in a rental unit but can’t decide whether you should manage the property yourself or hire a property manager. If you’ve studied real estate websites, you’d know industry experts are inclined towards the property management option.
On the other hand, some investors may tell you that a landlord should manage their property themselves. Some may promote the benefits of hiring a property manager. But which decision should you go with? Read on as we go through the property management vs. DIY management debate and find a conclusion!
Let’s start with DIY management.
Several people will tell you that you should manage your properties when you start your career in the real estate industry. This usually happens when you’ve just started, and you’re mostly interacting with people who haven’t been in the industry for a long time. However, the harsh truth is that there’s a lot of effort and time involved in managing a rental property successfully.
When you manage your rental property yourself, every responsibility falls on you. You’ll have to be an expert at everything, whether it’s property management, tenant screening, property marketing, customer service, property maintenance, rent collection, and so much more. When you start to see the wide spectrum of things you’re supposed to do, you may easily understand why several landlords get burnt out too quickly.
At one point, it can start to feel like a third job that doesn’t pay too well and instead takes a lot away. Since most landlords get tired pretty quickly, they end up selling their properties in the first five years of management. That’s because being a property manager while having a full-time job can be downright exhausting.
To put it simply, a property manager can save you time, hassle, and the money that goes into managing your property yourself. According to this office space company in Boston since you’ve hired a property manager, you can expect them to stay updated with all the updated laws that affect the tenant-landlord relationship. Moreover, property managers are also placement experts, screening and marketing your property so you can rest assured knowing that your property will be highly profitable.
Here are some other benefits of relying on property management:
1. They Understand the Rental Market
One of the most important reasons to hire a property manager is that they understand the rental market unlike anyone else. They have their finger on the pulse and are aware of every little change in the market. They know the price you can rent out your unit on, and they know how to avoid common problems like long vacancies.
Moreover, since they’re doing most of the heavy lifting involved, you can spend time researching tenants to know who you’re giving your rental unit to.
2.They Enable Growth
An investor loves passive income and the thought of financial independence. To put it simply, why would you think of stopping a revenue stream if it’s easy to manage? It’s the winning formula, buy a property, hire a property manager for its management, use the returns to buy a second property, and repeat the process.
This method is fool-proof and hassle-free. It makes you money while you sleep, and you don’t have to worry about a thing. Property management is the way to go if you’re trying to diversify your portfolio without breaking a sweat.
3. Avoid the Headaches
As an investor, you will have several things to worry about. Your primary concern should be growth and financial management now that you have a diversified portfolio and a collection of assets. It shouldn’t be a tenant who has not paid their rent on time. While it concerns you, it’s something a property manager can look after for you with ease.
Trust us, those midnight calls at odd hours can seem annoying!
The property management vs. DIY management debate has a clear winner, but it all comes down to priorities at the end of the day. If you’re a landlord who prioritizes a hassle-free property management experience that gives you returns without a headache, you’re going to love the perks that come with property management.
However, if you like getting your hands dirty, you should give DIY management a go.
If you haven’t hired a property manager already, click here to learn more about our services and how an experienced property manager can share some of your burdens.