Should You Manage Your Own Rental Properties?

The Benefits of Proper Management

Rental properties can provide their owners with a lot of benefits. For example, rental properties earn revenues over time rather than all at once, meaning that such investments can be more profitable than even the most successful fixer-upper in the long run. Likewise, other benefits can range from tax deductions to increased control over one’s source of income.

However, none of these benefits can be had unless rental properties have the proper management. In fact, proper management is so essential to rental properties that a bad manager can turn even the most profitable examples into losers within a short period of time.

Should You Manage Your Own Rental Properties?

If you are interested in rental properties, you have two choices when it comes to managing them. First, you can manage your rental properties on your own, assuming that you have the time as well as the expertise and the experience. Second, you can entrust your rental properties to a property manager in exchange for handing over a set percentage of your rental revenues at the end of each month. Each option is better-suited to some people than others, meaning that you need to choose between them based on your circumstances.

Be sure to consider these factors when choosing between these options:

  • Unless you are willing to put a lot of time into your rental properties, you shouldn’t attempt to manage them on your own. This is because rental properties can have all sorts of issues come up in the course of their routine operation, meaning that you need to be prepared to deal with them. Failing to resolve such issues in an efficient and effective manner leads to tenant unhappiness, which makes it harder to secure more tenants in the future.
  • Managing rental properties takes a wide range of disparate skills, ranging from bookkeeping to the technical know-how needed to perform minor repairs and maintenance. Even if you don’t have these skills, you might be able to learn them on the job if you are willing to put in the time and effort. However, leaving it to a property manager is the easier course, particularly if they have a proven team ready to help them with whatever they can’t handle on their own.
  • One particularly important skill is being able to smooth over disputes in a diplomatic manner. If you have no patience for people who are angry at you for something that might not even be your fault, then you probably shouldn’t be managing rental properties, particularly if you are the kind of person who gets angry when anger is directed at you.
  • Similarly, you need to be neat and well-organized if you want to manage rental properties because your bookkeeping will provide you with the best insight into your performance. If you don’t know how well you are doing, you can’t change things to get better results. This is particularly important if you are hoping to claim tax deductions, since you need the paper-based evidence to back up your claims.

Of course, good management isn’t the only factor in making rental properties profitable. Amenities, location, and all of the other factors that make real estate valuable are just as important if not more so. If you ever need help with picking the best rental properties, contact me for skilled and reliable assistance.

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