Should You Self-Manage or Hire a Property Manager?
Most of my landlords come, and many will try out property management themselves. So they ask me, “Jarrett, should I self-manage my property or hire a property manager?”
Property Management Is Not for Everyone
The thing is, property management is a full-time business.
So I’m partial, obviously. I’m a property manager. I love to help out other landlords. But at the end of the day, if you have the time, ability, skills, knowledge, and experience—which is a lot— to manage your property properly, then go ahead and self-manage.
But you have to realize that to do it right. You want to make sure that you are not putting yourself in a standpoint of liability because you can do a million things wrong.
The state of Massachusetts is not very landlord friendly; it’s actually a very tenant-friendly state. And if you mess up things, you can be reliable for triple damages. Imagine a security deposit that’s $3000, then paying $9000 as a result of it, tenants that are withholding.
Again, property management is a full-time job. It should be done professionally.
You don’t go to the dentist or the doctor saying, “well, I googled that. I kind of know how to do it.” And I’m not saying that there aren’t millions of landlords out there that don’t do it fantastically.
But for the small price you pay when you hire a property manager, it gives you peace of mind.
What a Property Manager Does
A property manager will take care of things such as your financials, bills payment, and rent collection.
Generally, they make sure things are easy and set up. They will ensure all the security deposits and last month’s rent are handled properly.
They will also be responsible for marketing the property, the renewals, paperwork, and compliance requirements that come along with it.
They also guarantee your property gets out to other agents to maximize your exposure. More importantly, they qualify the residents and ensure they meet certain minimum requirements.
Landlords don’t have the same ability or knowledge to do it. At the end of the day, the hardest one is probably maintenance: finding vendors to make repairs and checking that they are doing right. You don’t want to get hosed by a plumber or electrician and wait for them all day.
These are the type of things that are property manager does. And they usually handle it for a very small percentage or a flat fee, such as us at our company.
The Landlord Tutor Promise
If you or anyone else you know is trying to consider whether you should self-manage or hire a property manager, join the Landlord Tutor community and I’d be happy to walk you through the process.
