Real estate is a beneficial investment opportunity; once one has rental properties and is selling in the market, the next thing an investor needs to figure out is how to manage the property profitably.
In the market, there are two ways to manage property in today’s world; we either manage them as self, or we engage the services of a property manager. Property management entails many aspects on a daily:
- Fielding complaints
- Enforcing the lease
- Finding new tenants when vacancies occur
- Tenant screening
- Making repairs when needed
- Moderating issues between tenants
- Determining rental rates
- Evicting a tenant when need be
- Advertising your property
Given the many responsibilities involved in property management, it is easy for the owner to decide on who takes care of the property. Property management saves one time and effort while at it; things are taken care of professionally and speedily, whereas self-management saves money.
In self-management, the landlord is also the owner of the property. Tenants come to the landlord who is the owner when paying rent and when needing repairs for their household.
In property management, someone else manages the property on your behalf but at a fee. The manager handles the day to day tasks and ensures that your property is profitable and maintained to avoid spoilage of one’s investment.
Differences in Self and Property Management
- In self-management, we have more financial savings since the landlord the one managing the property and collecting all the rent. In property management, the owner has to pay agent fees.
- In property management, the property managers have experience in the industry and know the dos and don’ts, not to mention a quick turn around when problems occur. In self-management, the owner who doubles up as the landlord has no experience in the industry and is exposing himself to legal risks and fraudsters.
- In the event of vacancies in the property, a property agent will know how to screen potential tenants, unlike as they have the experience to weed out tenants who are likely to default; a self-manager will not have the same privileged because of lack of skill and experience.
- In self-management, the owner has greater control of the property, unlike when the property is in the hands of property management, where the manager has no relationship with the property and handles it like a business.
- In self-management, the prices set as per the discretion of the owner, which may be too low or too high, too little may mean the owner is running losses, and to high may mean the owner is not attracting customer, thus a loss situation. When a property agent manages the property, the reflects amenities and the location of the property.
- In self-management, the owner is guaranteed of the returns and sure of the cost of repairs as they are in touch with the property. When the owner has engaged the services of the property management company is some instances, they tend to be fraudulent and steal from the owner by having unnecessary repairs, not to mention not depositing the rental income.
- In property management, the owner has time to handle other businesses as they have someone watching their property. In self-management, the owner has limited time between their job and the management of the property as the owner has other priorities.
Overall it is better to find a property manager. One of the best property management companies is Premier Business Investments. They are known for their specialized services, and some of heir benefits includes.
- Broken Doors and Locks Policy.Where when they have a broken lock or door, the tenant has an available spare key to use as an alternative or instant repair services where a locksmith goes to fix the tenants’ door.
- Air conditioning services. During summer, the heat in the living room is not an added advantage, and therefore if the air conditioning is broken, then a repairer is asked to go to the specific apartment and fix the problem.
- Bathtub and drains. Once in a while, the bathtub and drains get blocked, and one needs the services of a plumber to come and fix as Premier Business Investments is responsible for allocating a plumber to go and fix the two aspects.