First-time real estate investors often choose landlording as their go-to strategy or specialty – and rightly so. Owning rental properties is an excellent way to build a diverse portfolio while simultaneously producing some steady monthly cash flow. However, it should also be noted that landlording isn’t for the faint of heart. If you’re new to the industry, managing your own rental properties is probably the worst mistake you can make.
Take a look around and you’ll notice that just about everyone has an interest in doing things on their own. This do-it-yourself mentality is rampant and spills over into areas that should be handled with the help of professionals.
One such area is property management. While you can technically be your own landlord, and thousands of people are, it’s certainly not advisable. The risks and responsibilities simply aren’t worth the payoffs.
Here are a few specific reasons why it’s always best to find professional assistance.
1. You Can’t Get Time Back
There are very few things in life that you can’t get back. If you lose money, there’s always an opportunity to earn more. If you miss out on buying a property, there will always be another property that comes on the market. If a tenant leaves, another tenant is somewhere out there. However, there is one thing you can never get back – no matter how hard you try. Do you know what that is?
It’s time.
No matter how hard you try or how much you regret missing out on something, you’ll never be able to rewind time. Whether it’s chasing down rent, screening tenants, painting walls, fixing leaks, or evicting tenants, you’re losing time when you deal with property management obligations.
While you may save some money by doing your own property management, you’re doing so at the expense of time that could be better spent finding new investments or being around your family. It’s not exactly a fair trade. A property management partner handles small, time-consuming issues so that you can focus on the bigger picture details.
If you’ve ever known someone who’s a doctor at a hospital or clinic, you’re aware that they are constantly on call. Even if they have a scheduled day off, there’s always a chance that they could get called in to handle some emergency or staff shortage.
As a landlord, you experience the same thing. You can’t plan a water pipe bursting or an appliance breaking. It doesn’t matter if it’s in the middle of the afternoon or the dead of night. When that cell phone rings, you’ll always wonder if it’s one of your tenants calling to deliver some bad news.
When you have a property manager, these things still happen, but you don’t have to be the one who takes the call. They’ll deal with the problem and then notify you that it’s been handled.
If you aren’t a lawyer, then you probably don’t understand all of the intricacies of real estate law. This could easily land you in hot water should you accidently do something wrong. Not only are there federal laws, but every state and municipality has their own laws. These include laws related to tenant screening, evictions, lease addendums, terminating leases, rent collection, property safety, inspections, and handling of security deposits.
If you’re able to successfully avoid even a single lawsuit, this will more than pay for your monthly property management fees. Not to mention, it’ll save you a lot of time, stress, and frustration.
As a landlord, you can never have a big enough circle of people around you. If you’re in this business for a long time, you’ll eventually come across everything. You’ll need plumbers, painters, landscapers, accountants, lawyers, roofers, and everyone in between.
Knowing who to call in a given situation isn’t always easy. Do you read online reviews, flip through the phone book, or ask a friend for a referral? Regardless, this process can be very time consuming. What you really need is access to a large network of reputable professionals. A professional property management company can provide just this.
Most landlords are genuinely good people. This means you probably have a kind heart and don’t want to purposefully hurt anyone. However, sometimes you have to make tough decisions as a landlord. It’s either your money or their money. In the end, your money has to win.
What are you going to do if you have a tenant who you’ve known for years and they suddenly get sick? You give them an extra month to pay the rent, but that month turns into two, three, or even four months. Suddenly, you’re unable to make the payment on the property. You either have to evict them or risk losing the property to the bank. Do you have the guts to evict them?
Thankfully, when you have a property manager, you don’t have to deal with these problems firsthand. By removing yourself from the emotional aspect of situations like these, you can make better business decisions.
Don’t handle your landlord responsibilities on your own. On paper, it may appear to save you a bit of money each month, but the upfront savings are almost always cancelled out by the opportunity cost.
At Green Residential, we’re the premier property management company in the Katy, Texas area. Whether you own a single rental property or have dozens spread throughout the Metro Houston area, we can help. When you partner with Green Residential, you get access to best in class resources, 30-plus years of industry experience, and a team of professionals that knows how to handle everything from tenant screening to evictions.
If you’re interested in learning more about our Katy property management services, then please don’t hesitate to reach out and contact us today! We would love to discuss your property management needs in more detail.
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