Renting properties can be smooth sailing or full-blown disasters, depending on the situation. One of the biggest decisions landlords have to make is whether to hire a professional property manager or self-manage their rental property. The purpose of this article is to help you make an informed decision about self-managing your rental property in Colorado.
An understanding of self-management
In Colorado, self-managing a rental property means taking on all responsibilities yourself instead of hiring a professional property manager. Finding and screening tenants, performing maintenance and repairs, collecting rent, and complying with local laws and regulations are all part of this process. Many landlords consider self-managing their rental properties to save on costs and maintain direct control over their properties.
Why You Should Self-Manage Your Rental Property
The ability to save money
Managing your own rental property offers the opportunity to save money. There is a possibility that property management fees can range from 8% to 12% of the monthly rent, which can accumulate over time. The rental income you keep will be higher if you handle everything yourself.
A direct control system
You control every aspect of the management of your property when you self-manage. The property belongs to you, so you can select tenants, oversee maintenance, and make all the decisions regarding it. This level of control can be reassuring for many landlords.
Customer-centric service
When you manage your property yourself, you can offer your tenants a more personalised service. As a result, relationships may be improved and tenancies may be extended. It is often more convenient for tenants to deal directly with the property owner rather than a third party.
Reasons to Hire a Professional Property Manager
It is time-consuming
Managing a rental property on your own requires a substantial amount of time. You have a variety of tasks to handle, including advertising vacancies, screening tenants, dealing with maintenance requests, and processing late rent payments. You may find it difficult to manage your property effectively if you are working full-time or have other commitments.
Taking care of legal obligations
It is essential to understand and comply with a multitude of laws and regulations when managing a rental property. A tenancy law, a safety regulation, or a fair housing rule can be considered among these. Financial penalties and legal consequences can result from non-compliance.
The complexity of these legal responsibilities is often underestimated by landlords. Our courts are frequently filled with horror stories about landlords who are not up-to-date with fast-moving rental forms and legal obligations. Keeping informed and in compliance is important, but it can be costly.
Performing maintenance and repairs
Landlords who self-manage face another significant challenge: repairing and maintaining their properties. In the absence of a reliable contractor network, you might end up paying too much for repairs or getting subpar work. As a result, the long-term costs can be higher.
Managing tenants
Tenant management can be one of the most stressful aspects of self-management. Inexperienced landlords may find it challenging to deal with late payments, resolve disputes, and enforce lease terms. Tenants with problems can cause you stress and damage your property. This becomes even more complicated if you are not in the state, or far away from the location of your property.
The Benefits of Hiring a Property Manager
- Multi-property management can be overwhelming. It is important to ensure the maintenance of all your properties is done by a property manager.
- Property managers can save you time and stress if you have a busy schedule or other commitments.
- If you are unfamiliar with local laws and property management best practices, a professional can ensure compliance and protect your investment.
Professional Property Managers Offer a Wide Range of Benefits
Experiencing and Expertise
In addition to their expertise and experience, property managers bring a wealth of knowledge and experience to the table. Their expertise includes tenant screening, lease agreements, maintenance management, and legal compliance. Renters can benefit from this expertise by preventing common issues and improving the overall performance of their properties.
Efficient use of time
By hiring a property manager, you can focus on other priorities while they manage the day-to-day operations. If you’re working full-time, have other investments, or just want to have more free time, this can be very beneficial.
Compliance with laws
Local laws and regulations are known to property managers, ensuring that your property remains in compliance. Legal issues and financial penalties can be avoided by doing this.
Contractors with a reputation for reliability
The experience of a property manager allows them to establish a network of reliable and cost-effective contractors. A professional company will handle maintenance and repairs promptly and efficiently, often at a lower price than you could find on your own.
In conclusions, it often works out more cost effective in the long term, with less stress, to hire a property manager, and let them handle all the day to day tasks or managing a rental property.
