Buying a new apartment

Should You Manage Your Own Investment Properties?

by Same Patterson

If you buy an investment property to rent out, you have two main options in terms of taking care of it: you can manage the property yourself or outsource the work to a property management company. Wondering which option is best for you? Here are a few signs you should contact a property management company:

1. You live out of town.

If you don't live in the same town as the investment property you own, you cannot drive by and check on it. Similarly, you cannot easily show the property to tenants or respond to their calls for help with maintenance issues. In that case, you may be better off hiring a property management company. The company can oversee your property and let you know what's happening with it.

2. You don't have time to manage it.

Do you have time or interest in fielding calls about clogged toilets in the middle of the evening? Do you want to deal with cleaning out the rental in between tenants? Do you have spare time to deal with calling tenants who have paid the rent late?

If you have recently retired, stay home with your kids or only work part time, the thought of investing time into your investment properties may appeal to you. However, in other cases, you may simply not have the time necessary to take care of a rental property, and in that case, a property management company can help.

3. Screening tenants sounds emotionally daunting to you.

The choice to hire a property management company isn't just about logistics. There are also less tangible elements to consider. In particular, you should be honest with yourself and assess your ability to screen tenants and chose the best one from a business standpoint.

For example, imagine two tenants look at the rental. One of them has the income and references you want. However, the other tenant appeals to you emotionally. They have three kids, and you aren't sure where they will go if you turn them away. A savvy landlord needs to respect his investment and chose the former option. If you know that's not your style, you may want to contact a property management company. They can help you with the emotionally tough aspects of being a landlord as well as the other elements.

Want to know more about how a property management company can help you with tangible and intangible tasks? Contact one today.