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Being a homeowner comes with a range of challenges, especially when you want to rent out your home to someone else. Deciding on what would be best for your individual needs can be a daunting task. One way to help you make a decision is to perform a cost-benefit analysis by listing all of the tangible and intangible costs and benefits, and let that make the decision for you. But what are some things that you need to consider when making this analysis? That’s where I come in!
Time is money. How much would you say that your time is worth? Consider this as you are making your decision. Property management companies help to decrease the amount of time you have to spend to make sure your investment is going smoothly. Although they may call you when important decisions need to be made on your property, the day-to-day would no longer be a concern.
Legal risks may ultimately cost you thousands. It’s hard to keep up to date on fair housing laws, eviction procedures, or any other general real estate laws that could wind up getting you into trouble. If you aren’t careful, you may end up in a courthouse. Is it worth the potential risk of winding up owing someone money just because you don’t know the ever-changing world of real estate? Being a landlord holds a lot of responsibility, so having someone who is up-to-date on the changing laws could be a huge benefit.
Technology isn’t always free. Systems to collect rent, accounting software, and screening services for potential tenants all cost money. Depending on the software, it could cost you hundreds of dollars, which would be covered if you had a management team instead of self-managing.
Being stress-free can hold significant value. Dealing with an angry tenant, late payments, or maintenance coordination can be stressful. Having someone else deal with all of that can be a huge benefit.
Of course, hiring a property management company to manage your property costs money. It can be anywhere from $150-$350 a month to hire a property manager, depending on your home and the fees that they charge. Money is money, so it’s important to consider the management fee when deciding which would be the best fit for you: self-managing or hiring a property management company.
In the end, it all depends on what holds the most value to you. If time, less liability, or being stress-free are less valuable to you than paying a monthly fee, then it would be better for you to self-manage; however, if you value all of that more than a monthly fee, then you may want to consider hiring a property management company. Hero Property Management is here to help. Reach out now to 801-845-4390 for a free consultation!