Are the Risks of DIY Rental Management Worth It?

November 29, 2018

Are the Risks of DIY Rental Management Worth It?

 

 

Risks of Do-it-yourself Rental Management

Among property management companies, you’ll hear a similar response to the idea of managing your property yourself. Property management can be a Do-It-Yourself job, but what you think you might save in pounds, you’ll probably over spend in time. It’s always a good idea to consider what’s most important to you, and then decide what you are willing to give up. If you’re willing to spend your time serving as the landlord and have the resources to find qualified vendors that can assist with maintenance at discounted rates, then the DIY method will probably work for you. But if you have other plans for your time, you may want to consider the benefits of a professional property manager working for you.

Investment property requires time and money. But, if managed correctly, you can see significant returns on your investment and be able to spend your free time where you want to. But, in case DIY is still calling your name, here are three risks you should consider.

1. Renting a property is hard work

Securing a tenant is just the start of the process in real estate investing. Unfortunately, finding a quality and qualified tenant usually takes a long time. You’ll have to place ads, be available for showings, deal with the appointment no-shows, and work after hours and weekends until the house is leased. It can be a long and costly process. With a Property Management Company all this can be handled by professionals who have placed thousands of tenants in thousands of properties.

2. Setup is even more hard work

The work isn’t over just because you think you have found the perfect tenant. Responsible management starts with the application. Credit reports, background checks, rental histories should be checked on all rental applicants over the age of 18. Again, this will cost both time and money. This is a necessary process to be responsible to both your property and the community. Don’t forget to review the Housing Act to ensure you are not breaking any laws or renting regulations.

3. You’ll have to deal with ongoing maintenance

Real estate is like anything else in life—things will need to be repaired or replaced over time. It’s all part of the normal wear and tear on a house. The bigger appliances like central heating need regular maintenance. You will need to decide if you can take care of these things yourself or need to hire someone else for the job. When you have tenants, you will also have regular requests from them for repairs.
When looking at the cost and time commitment of maintenance and repairs, you may be considering the benefits of a property management company. Doing things, yourself can have its rewards; perhaps it can help you develop a more personal relationship with your tenants. But doing things yourself also comes with some risk. Property Management Company can mitigate those risks for you.
You will have to pay for management services but given all the headache and time you will save, the service is well worth it.

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