Managing Rental Property – Hire a Pro or Go It Alone?
Managing rental properties can become a time consuming task, which is why some people opt to hire a professional. At the same time, many people have chosen to take care of everything themselves. There are a variety of options that need to be considered in order to decide which option is the best fit for your situation. Here are some of the most important variables that you need to consider when making this decision.
1. Number of Properties
Many experts have recommended that people who are new to property management or only have a small number of properties to take care of are better of going it alone. A primary reason for this is that doing this provides a type of on-the-job training. It is important to have at least a working knowledge of what needs to be done and how to do it. Even if using a professional service is the end goal, understanding how everything works is a necessary safety-net that may come into play when switching professionals.
There are a large number of tasks that may need to be undertaken as a property manager, and there comes a point where a professional service may be very advantageous This is especially true if renting properties is not your primary income or primary responsibility. Once you have enough properties that you are unable to devote enough time managing them, a professional service may be required.
2. Personality Type
Some people simply do not have the personality type to outsource the management responsibilities. If you are extremely hands-on and tend to micro-manage, then a professional may cause more stress and consume more time than doing it yourself. On the other hand, if you are not detail-oriented enough, then a professional management service will quickly become necessary. Many people do not realize how much their personality type should weigh into this type of decision.
3. The Value of Your Time
Time is a finite resource, which inherently means that it has a certain level of value. The value of your time is often something that you can only determine for yourself. For example, if your time is valued at $10/hour and a property management service will cost you $8/hour then hiring the professional service is a smart business decision. If the situation is reversed, then hiring a management service is not a good decision. You only get 24 hours in a day, so make sure that you get the most out every hour. When determining the value of your time, it is important to not only look at the financial trade off, but also factor in the value that you place on your free time.
There are a lot of variables that should be taken into consideration when deciding whether or not you need to hire a pro or go it alone when it comes to managing your rental property. The 3 most important variables are: the total number of properties that need managed, your own personality type, and the overall value of your time. If you make the right decision, it should lead to less stress, less anxiety, and more income.
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