{"id":63930,"date":"2022-04-07T10:20:00","date_gmt":"2022-04-07T14:20:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=63930"},"modified":"2022-04-08T10:38:49","modified_gmt":"2022-04-08T14:38:49","slug":"managing-rental-properties","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/managing-rental-properties\/","title":{"rendered":"Is Managing Rental Properties Right For You?"},"content":{"rendered":"\n

Are you considering managing your own rental properties? What are the pros and cons of being a self-manager?<\/p>\n\n\n\n

If you’re looking into renting your properties, you’ll need to decide if you want to manage them yourself or hire someone else to do it. In Buy, Rehab, Rent, Refinance, Repeat<\/em>, real estate agent David M. Greene states the pros and cons of each option, plus the responsibilities you’ll face if you decide to manage rental properties yourself.<\/p>\n\n\n\n

Continue reading to get a better sense of what it’s like managing rental properties.<\/p>\n\n\n\n\n\n\n\n

The Pros and Cons<\/strong> of Managing Rental Properties<\/h2>\n\n\n\n

When it comes to managing a rental property<\/strong>\u2014from responding to maintenance requests to handling lease renewals and evictions\u2014you can do it yourself or hire a property manager <\/strong>(PM). Although Greene recommends having a PM on your Dream Team, you don\u2019t have to use them to manage your property (they can still be a valuable member of your team, for example, by offering advice about the best neighborhoods to buy investment properties). <\/p>\n\n\n\n

He lists the pros and cons of each option:<\/p>\n\n\n\n

<\/td>Property Manager<\/strong><\/td>Self-Management<\/strong><\/td><\/tr>
Pros<\/strong><\/td>Experience and skill set Familiarity with the area <\/td>No cost and control over every aspect of management<\/td><\/tr>
Cons<\/strong><\/td>Higher cost Time and effort to find a high-quality, compatible PM<\/td>Lack of skills and experience, along with consistent time and effort (that could be better spent finding, buying, and rehabbing new properties)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Greene writes that this choice depends in part on your personality: Some investors may enjoy the work or value the control more than others. However, as you build your portfolio of investment properties, managing them yourself becomes less feasible,<\/strong> and you may reach a tipping point<\/a> where you have no choice but to hire a PM. <\/p>\n\n\n\n

Weighing the Pros and Cons<\/strong><\/h3>\n\n\n\n

The pros and cons listed above can be summed up as three key differences: <\/p>\n\n\n\n

  1. Time and effort<\/li>
  2. Cost<\/li>
  3. Skills and experience (this encompasses knowledge)<\/li><\/ol>\n\n\n\n

    While each investor has a different tolerance for the time and effort required to find a property manager or self-manage a rental property, let\u2019s examine the other differences. <\/p>\n\n\n\n