There are two paths to take as a landlord of rental properties. You can choose to work hard and self-manage your rental property in Richmond. Or you can hire professionals to take care of everything and enjoy the beauty of truly passive income.
Many landlords, especially first time landlords, choose to self-manage their rental property. Some do it to save money and maximize their ROI. Others genuinely enjoy taking care of their property investment. At the same time, others may not be aware of how beneficial property management companies can be.
If you are thinking about self-managing your rental property in Richmond, you should be aware of the downfalls that come with it.
It Will Waste Your Time
We don’t want to be too blunt, but when you self manage your own property, you’ll waste a lot of time. Typically, people who invest in real estate do it for passive income. They spend most of their time on other projects or working a full-time job.
Self-managing a rental property means you are solely responsible for maintaining, repairing, and taking care of the property and the tenants in it. This takes away from the benefits of your investment because you have to spend so much time keeping up with it.
Below are the top responsibilities that will waste most of your time while self-managing your rental property.
Owning a rental property in Richmond is useless if you don’t have tenants to fill it. Finding tenants for your property can take a lot of time, especially when competing with other properties in the area.
You will spend a lot of time advertising your rental property online. This involves taking attractive photos of the property, writing an enticing description, and posting the listing to multiple online platforms. Don’t forget about the time waiting for people to contact you!
Then once potential tenants start contacting you about the property, you have to spend time answering their emails, texts, and phone calls. This can take your attention away from other projects and work you are doing.
Finally, you will spend most of your time showing the property to potential tenants. If you’re lucky, you will only need to show the property to a few people before someone decides to take it. Others struggle with showing the property to ten or more groups and still waiting for someone to lease it.
Maintenance and Repairs
Managing any property can be tedious, especially if it’s older. There are bound to be multiple repairs and maintenance that must be done throughout the year. Whether you complete the repairs yourself or hire a professional, you will find yourself wasting time with this.
If hiring professionals to handle your repairs, you will have to spend time researching to find the best ones. You will also have to schedule the repair and may even have to be at the property when the repairs are done.
If handling the repairs yourself, not only will you have to spend time making the repair, but you will also have to drive back and forth to the property and purchase the necessary parts. That’s without making any mistakes and learning how to repair the problem.
It Will Cost You
The beauty of owning a rental property in Richmond is that you reap the benefits of passive income. Just by owning the property and collecting a rent check each month, you are enjoying returns on your investment. However, if you self-manage your rental property, you may find that you lose money on your investment.
Overpaying for Repairs
When you hire a professional service to make repairs to your rental property, there is a chance that someone will overcharge you. This charge can show up in both the labor and the parts that you pay for.
You won’t know that you have overpaid for a service until after it has happened, though. For some landlords who self-manage their rental property, this can be too late for them.
When working with a property management company, you know you’re getting the best price for repairs and maintenance from trusted professionals. Most companies will work out a rate with their contractors or even have an in-house maintenance team.
Losing Money by Finding the Wrong Tenants
If only being a landlord was as easy as accepting the first person interested in leasing your property. Unfortunately, not every interested party will be a great tenant.
While self-managing your rental property, you may skip on the tenant screening process when filling a vacancy. This is crucial to finding proper tenants. This will assure you that your new tenants are qualified and a good choice to lease the property.
Bad tenants can cost you a loss of rent, court fees to collect unpaid rent, and even eviction fees. Evictions can be long and drawn out and cost quite a bit. You can avoid this by first finding the right tenants for your property.
Paying Legal Fees and Fines
Laws heavily regulate the real estate industry. You must be aware of the three layers of law when self-managing your rental property: local, state, and federal.
If you are unaware of essential laws, such as the Fair Housing Act, you could get into a lot of trouble if you violate them. Unfortunately, the excuse, “I didn’t know,” doesn’t usually hold up in court when it comes to breaking these laws. Fines for violating the Fair Housing Act can run upwards of $16,000.
When it comes to learning real estate laws, it’s best left to the professionals. Just like you would hire a lawyer to handle a legal case, it’s a good idea to hire a property management company to handle your rental property. They are experts in the field and can help get you out of sticky situations.
It Holds You Back from Making Money
There are incredibly lucrative real estate markets all over the country. When you choose to self-manage your rental property in Richmond, you lose out on amazing investment opportunities in other cities. Instead, you have locked yourself in one location and are limited by the market opportunities there.
When you hire a property management company to manage your rental property, it opens an entire world of opportunity. You can invest in any city that you see fit with the best real estate deals. The possibilities are limitless!
In fact, 66.8% of landlords who work with property management companies do so because they are too far away from their rental properties.
By self-managing your rental property, you are holding yourself back from growing your portfolio and making even more money.
Are You Ready to Hire a Property Management Company in Richmond?
If you are ready to experience the benefits of passive income truly, it’s time to search for a property management company. Hylton & Company will handle all of your property’s needs.
From filling vacancies with highly qualified tenants to keeping up with maintenance and repairs, you can rest assured your property is in great hands.
For all your rental property needs in Richmond, Virginia, contact us for more information about what we can do for you.