If you’re wondering whether to hire a property manager or do it yourself, we have some property management tips that may help you decide.
Managing Your Own Rental Property: Time
The first thing to consider is time. Time is money, and if you decide to be a DIY landlord, you need to think about the value of your time. Be prepared
to take all the maintenance calls from your tenants 24 hours a day. You’ll need an invoicing system where you can look up previous work orders
and schedule vendors. Most professional property managers have software systems that can take calls and organize online repair submissions. This
helps to execute the work quickly. You don’t want a flood at your property while you are on vacation. That will cause damage to your asset and
trouble for your tenant.
Hire a Property Manager: Costs
Allocate about 10 percent of your rental income to pay for a professional property management fee. However, this is a tax write-off, so it actually
comes down to about five percent of your rental income. Determine whether that will work for your cash flow.
DIY Landlord: Expertise
Think about who is the best expert when it comes to finding and placing a tenant. You need to follow state and federal fair housing laws. There are
a lot of legal liability issues that can arise when inexperienced landlords look for tenants. You need to be up front and honest with your qualifications,
and you need to treat all applicants fairly and consistently. A professional manager can find you someone who is qualified. Remember – a tenant
who has the money today won’t necessarily be able to pay rent throughout the life of the lease. You need to know how to properly screen and qualify
Professional Sacramento Property Management: Technology
Another thing to consider is software and tracking. You have to properly report your income and expenses. Management fees and property improvements
are tax write-offs. You’ll need a 1099 to get tax deductions at the end of the year. Most management companies have software that allows tenants
to pay rent and make maintenance requests online. You’ll have access to an owner portal where you can view invoices and payments.
Statistically, owners find they will make more money using a property management company. You’ll get a more qualified tenant who pays rent on time,
and your overall cash flow will actually increase over the life of your asset.
is always my main consideration when I’m deciding whether to do something myself or use a professional. If you have any questions about Sacramento
property management, please don’t hesitate to contact us
at HomePointe Property Management
, a HomeRiver Group company.