let’s talk : MANAGING YOUR OWN PROPERTY
Good morning!
About a month ago we made the decision to stop working with a property manager and start managing our own properties! Let’s talk about that.
So, as we do, let’s talk Real Estate, let’s talk MANAGING YOUR OWN PROPERTIES…
FIRST OFF, WHAT ARE THE ROLES & RESPONSIBILITIES OF A PROPERTY MANAGER?
Essentially…
Set Rent
Collect Rent
Screen Tenants
Property Maintenance
Manage Budgets
…So now we own that!
WHAT ARE THE PROS TO SELF-MANAGING?
Cost Savings
Property managers cost $$$. Managing your own property does not! Just as an FYI, fees can depend on the area, manger, market, etc but as a rule of thumb, you can expect to pay anywhere from 6%-10% of monthly revenues on property management fees.
More Control
When you are self-managing you are more aware of what is happening with the properties, the tenants, and the operations behind them.
WHAT ARE THE CONS TO SELF-MANAGING?
On Call 24/7
When you are self-managing your own properties you are on 24/7, literally. If there is ever an emergency you are now the phone call the tenants makes (after 911 if needed) instead of your property manager.
Paperwork
There is a ton of paperwork! Between new leases, maintenance request and repairs, working with contractors, etc. The paperwork never ends!
Sometimes You Have To Be The Bad Guy
At some point or another you will probably have to deal with an unhappy tenant or a tenant who is breaking the rules set out in the lease. It’s a part of the gig and it is not fun. Always try and keep your cool!
You HAVE To Be Familiar With Local Code, Laws & Regulations
You need to stay familiar with local codes and regulations to ensure your properties are safe and operating in accordance with the law.
Leasing Vacant Units
When your unit is empty, it is now your responsibility to fill it! Whether that be hire a real estate agent or do it yourself, it is your job to come up with a plan. We decided to fill one of our property’s ourselves even when we had a manager. We marketed the property on Zillow, Trulia, and Facebook. 100+ phone calls, Facebook messages, and one Open House later we filled it! The Open House worked AMAZINGLY! The current tenant saw our post on Facebook, inquired about the Open House and applied right then and there! She was moved in within 2 weeks!
Screening tenants
Once a tenant applies it is your job to screen them! This involves a background and credit check of some sort. Some people also choose to call references and previous landlords.
Most importantly…Time
While managing your own property does not cost money, it does take a significant amount of time,
From the above list I am SURE you are thinking; “why in the world did you decide to do this”? Well for us, we found we were doing a lot of these tasks anyway! We want to be involved, we want to learn the ins and outs, and we want to make sure that our tenants are happy! Being down in the trenches allows us to do this! Jeff Bezos once said, “If you don’t understand the details of your business, you are going to fail.” So, that’s what we are doing…learning the details!
Feel free to comment on the blog post HERE and let us know what YOU think!
ALSO,GUESS WHAT?!
We are now on INSTAGRAM (ON TWO ACCOUNTS), FACEBOOK and PINTEREST!
Follow us on Instagram : @letstalkRE for all things home and real estate AND @letstalkwholesaling for future deals that could be yours!!
Join our FB community on our LETSTALKRE page : https://www.facebook.com/LetsTalkREbyEO
Check out our PINTEREST inspirations here: https://www.pinterest.com/erinhomeandrealestate/
Happy Wednesday!
Erin
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Me – this is based on my own personal expereince!
