Owning rental property can be a lucrative investment but comes with many responsibilities. Learning how to manage a rental property will help you understand how to juggle those responsibilities. It will also help you know when to step back and use a property manager to help with the load.
Explore the top tips for managing your rental property and advice on when to hire a property manager.
How Hard Is It to Manage a Rental Property?
Managing a rental property comes with several challenges you’ll need to account for, including:
- Tenant Relations: Communicate with tenants and address late payments, complaints, and lease violations.
- Maintenance and Repairs: Managing regular maintenance and promptly resolving repair issues to maintain tenant satisfaction.
- Legal Compliance: Staying on top of landlord-tenant laws and regulations to avoid legal disputes and liabilities.
- Vacancy Management: Minimizing vacancy periods through strategic marketing and swift tenant turnover procedures.
- Financial Management: Budgeting, rent collection, and expense tracking to maintain profitability.
Can I Manage My Rental Property?
Is it possible for a landlord to handle all the rental property challenges and tasks themselves? The short answer is yes.
Here are five tips for managing your rental properties yourself.
1. Educate Yourself
Become familiar with local landlord practices and financial management principles. Networking with other landlords helps you understand what others in the area are doing so you can maintain a similar standard for your tenants.
2. Set Clear Policies
Reduce as many gray areas as you can in your rental agreement. That way, everyone knows what’s expected and when. For example, clear rent collection policies, maintenance request processes, lease terms, and tenant responsibilities are a few areas you should outline in detail.
3. Screen Tenants Thoroughly
By conducting background and credit checks on tenants before they rent your property, you can ensure you only accept those most likely to abide by your property policies. You can also ensure they have a reliable rental history and financial stability to make consistent, timely payments.
4. Prioritize Communication
You should provide open lines of communication where tenants can easily connect with you with any questions, maintenance requests, or concerns. That helps you learn about issues early, giving you more time to resolve them.
5. Routinely Inspect Your Property
Regularly inspect your property. These inspections help you identify maintenance issues early. It also lets you check that your tenants adhere to the lease agreements.
How to Know When to Use a Property Manager
While you can perform those tasks yourself, there are scenarios where you should consider hiring a property manager. On average, 45% of landlords manage their properties, while 44% work with a property manager. Another 11% manage their properties but don’t own them.
Here is a checklist you can use. If you say yes to one or more of these items, it might be time to consider a property manager:
Limited Time and Availability
Do you have a busy schedule or multiple properties? Too many obligations can overwhelm you. But, a property manager can alleviate the burden so you can adequately care for your investments.
Distance from the Property
Remote property management is possible but more complicated since you can’t perform in-person inspections, and communication can be challenging. A local property manager helps you manage remote properties.
Lack of Expertise
While you always want to learn more as a landlord, there are times when tasks are above your expertise. For example, legal issues and financial challenges may be more complex than you can handle alone.
Tenant Issues
If you have reoccurring issues with tenants, such as disputes, late payments, and frequent turnover, it might be time for professional help managing your property.
Passive Income Goals
Is your goal to generate a completely passive income? Managing your property requires considerable time and effort, so it is not passive. But it can be if you hire a property manager.
How to Know When to Manage Your Property Yourself
What are some reasons you might not hire a property manager?
- Cost: Property management fees, plus extra leasing and maintenance services, range from 8% to 12% of the monthly rent. Before hiring a property manager, ensure it’s within your budget.
- Connection: A property manager removes you from your tenant. If you like building relationships and being involved with your tenants, you may want to do the tasks yourself.
- Control: A property manager takes some of the control away from you. While it can relieve some stress, it can also mean you have less control over how issues are resolved and which tenants rent your properties.
How to Manage A Rental Property in South Carolina
Did you relate to some of the challenges we listed?
Then, it might be time to talk with a property manager.
Quartermaster Properties can help you manage your rental properties and receive all the services you need for a stress-free rental property.
Contact us to connect with the best property managers in South Carolina – whether in Greater Greenville or Greater Charleston area.
