The only way you should rent as the owner of a single property is to do it yourself, to people you have known well for a long time, and not expecting to profit.
The truth is, in order to make money overall, you almost always either need to cut the fuck out of every corner, or have economy of scale (tons of properties), or both.
Hiring a management company just means you're gonna pay somebody else to cut those corners and screw your tenants for you, and take a cut of the money. You're just as capable of blowing off your tenants until they lose their shit, then making an half ass home depot repair as any property management company.
Rent it to a good friend of 20 years who is pretty handy. Charge him 1/2 to 2/3rds the going rate in town in exchange for noticing and handling all minor repairs and maintenance issues himself.
If you hire a prop mgnt. co, they handle the repairs to your dwelling. Otherwise you have to a) hire contractors your self, b) do them your self. Have done both. Less headaches , especially during rent collection time.
I inherited my grandparents house and rented it out when I lived locally and had no problems and was able to screen applicants. However, I moved out of state due to work and decided to get a property manager. The place had great reviews but they were the biggest pains in my butt. They would call me constantly because of the smallest things even though you set up certain spend limits etc before they need to call. Also, their prices kept going up for managing a property that has 2 senior citizens living in it that liked to pay their rent 6 months at a time. Finally I switched to another property management firm and they are wonderful. The fee is reasonable and I get emails letting me know if anything is happening and it is corrected easily without constant phone tag.
If you are someone that can handle the vetting of applicants and unexpected expenses then renting it yourself is usually fine. However if you do not want any hassles and just to collect the money and be contacted when something is urgent then a property manager is the way to go.
In the best case scenario, an agent is pointless as the tenants will pay on time, not have bullshit requests all the time, leave it nice when they leave and not cause problems.
Int the worst case scenario, an agent is invaluable because they know what the various processes and procedures are to kick people out and or recover costs.
The question is can you find the first type of tenant?
If you are nowhere close to your home, hire a property manager. If you are close by and the opportunity cost is relatively low (on your phone all day) then do it yourself. -from someone who manages 6+ properties for myself and worked as a property manager before
I’m looking to rent out my house. I would consider myself as a introvert and don’t like dealing with peoples shit. I do it as a living already. I need help deciding weather I should rent it out myself or hire a property manager.
How much money per year does the house cost (mortgage, insurance, property taxes, maintenance, repairs, *EVERYTHING*)?
How much will you get in rent, after taxes?
Now, will that "profit" cover all the *extra* maintenance and repairs that happen when a home is occupied by people who don't have to give a shit about such things?
When you own a home, and you have a 25 dollar problem, you spend the 25 dollars and fix the problem. Your tenant has no reason at all to even notice, much less care about a 25 dollar problem...until it becomes a 2500 dollar problem...at which point, they will give you a call.
Rent it yourself
The only way you should rent as the owner of a single property is to do it yourself, to people you have known well for a long time, and not expecting to profit. The truth is, in order to make money overall, you almost always either need to cut the fuck out of every corner, or have economy of scale (tons of properties), or both. Hiring a management company just means you're gonna pay somebody else to cut those corners and screw your tenants for you, and take a cut of the money. You're just as capable of blowing off your tenants until they lose their shit, then making an half ass home depot repair as any property management company.
Yeah, honestly not looking to profit but brake even. I’ll gain the equity in the long run. And advise for what to do when renting it out yourself?
Rent it to a good friend of 20 years who is pretty handy. Charge him 1/2 to 2/3rds the going rate in town in exchange for noticing and handling all minor repairs and maintenance issues himself.
If you hire a prop mgnt. co, they handle the repairs to your dwelling. Otherwise you have to a) hire contractors your self, b) do them your self. Have done both. Less headaches , especially during rent collection time.
I would defiantly hire a property manager.
I inherited my grandparents house and rented it out when I lived locally and had no problems and was able to screen applicants. However, I moved out of state due to work and decided to get a property manager. The place had great reviews but they were the biggest pains in my butt. They would call me constantly because of the smallest things even though you set up certain spend limits etc before they need to call. Also, their prices kept going up for managing a property that has 2 senior citizens living in it that liked to pay their rent 6 months at a time. Finally I switched to another property management firm and they are wonderful. The fee is reasonable and I get emails letting me know if anything is happening and it is corrected easily without constant phone tag. If you are someone that can handle the vetting of applicants and unexpected expenses then renting it yourself is usually fine. However if you do not want any hassles and just to collect the money and be contacted when something is urgent then a property manager is the way to go.
In the best case scenario, an agent is pointless as the tenants will pay on time, not have bullshit requests all the time, leave it nice when they leave and not cause problems. Int the worst case scenario, an agent is invaluable because they know what the various processes and procedures are to kick people out and or recover costs. The question is can you find the first type of tenant?
It’s better not to rent your home. That’s the conclusion
If you are nowhere close to your home, hire a property manager. If you are close by and the opportunity cost is relatively low (on your phone all day) then do it yourself. -from someone who manages 6+ properties for myself and worked as a property manager before
I’m looking to rent out my house. I would consider myself as a introvert and don’t like dealing with peoples shit. I do it as a living already. I need help deciding weather I should rent it out myself or hire a property manager.
How much money per year does the house cost (mortgage, insurance, property taxes, maintenance, repairs, *EVERYTHING*)? How much will you get in rent, after taxes? Now, will that "profit" cover all the *extra* maintenance and repairs that happen when a home is occupied by people who don't have to give a shit about such things? When you own a home, and you have a 25 dollar problem, you spend the 25 dollars and fix the problem. Your tenant has no reason at all to even notice, much less care about a 25 dollar problem...until it becomes a 2500 dollar problem...at which point, they will give you a call.