When starting a property management business, you're probably wondering how to effectively manage your rentals and make money with your properties. The property management industry is full of options and strategies, and you just need to choose the one that suits you best. Define your top priorities, consider all the pros and cons, and select between self-managing your rentals or hiring a property manager. There is also one more solution (our favorite one!): using a property management software system. But we'll talk about that a bit later.
If you decide to manage rentals on your own, be ready to do numerous daily tasks and spend most of your time ruminating on how to make your rentals attractive for potential renters. Self-management requires marketing and advertising, as well as time management skills. Keep in mind that you won't just be collecting rent and inspecting properties from time to time. A landlord has many more responsibilities, such as providing general maintenance on the property, fixing urgent issues, ensuring safety, communicating with tenants, trying not to lose your temper while interacting with difficult tenants, running background checks, conducting lease agreements, and evicting tenants when necessary.
Thus, self-management will save you money at the expense of your own time and effort. Ask yourself a question: Am I ready to sacrifice my personal life for a 24/7 landlord job? If the answer is yes, you don't need to continue reading this article. But if you'd like to maintain your work-life balance and avoid landlord burnout, spend another few minutes and check out what else we've got here for you.
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Hiring a property manager means that you're separating your work and personal life. And that is pretty awesome! Your rental properties are managed by a professional who knows all the nuances of the property management industry. You won't be getting phone calls from tenants at midnight and on weekends, there's no need to remind your tenants of rent due dates, and maintenance issues are no longer your worst nightmare. These things are now the responsibility of your property manager. If you have lots of properties or own rentals that aren't located in the same area, you may need the assistance of a property manager.
However, there are a few cons to hiring a property manager. First of all, you're losing the possibility to learn and acquire valuable knowledge and experience, as well as to see what landlord-tenant interactions look like from within. Using a property manager, you won't get to see how landlording requires active participation in the "life" of your rental properties. Apart from that, the financial part is probably one of the most crucial factors of why you might not be interested in the idea of hiring a property manager.
Property Management Software
The middle ground between self-management and property management is a property management software system, something like TenantCloud. If you're about to join the industry, all-in-one property management software might become your secret weapon. You'll keep your business under control by using a great tool that makes the overall management process easier and more productive.
Related: Top 6 Free Property Management Apps: Everyday Landlord Software
TenantCloud will keep your landlording business highly organized and eliminate the need for additional services that offer financial management solutions or maintenance regulation. Landlords can benefit from TenantCloud, as it keeps track of income and expenses, monitors maintenance issues, and ensures tenants aren't late with rent payments.
Are you a DIY landlord or a property manager? What's your attitude towards property management software systems? Share your thoughts in the comments section below. We'd love to hear what you think. :)