Managing Rental Properties: Hire a Partner or DIY?
Let me tell you, there’s real pleasure in doing for others what we’ve done for ourselves: managing rental properties. Owning property is a fantastic way to build wealth, but managing it yourself is often far from easy. Sure, you could do it all on your own, but why would you?
Over the years, we’ve learned that rental property management goes beyond just collecting rent. It’s about tenant screening, staying on top of legalities, and keeping properties in tip-top shape. Early on, we learned that skipping just one of these steps can cause bigger problems down the line.
Software Ties It Together
When we were just starting out, we did everything manually—using actual maps to get to properties, answering tenant calls with our home answering machine, and dealing with piles of paperwork. Today, with property management software, the process is so much easier.
Property management software has simplified everything. From rent collection to tracking maintenance requests, automation takes care of the details, saving both time and stress. Back when we were balancing showings and raising toddlers, these tools would’ve been a lifesaver!
Team Qualifications
At Henderson Properties, we started with a handful of homes and grew into a full-service real estate firm. All of our property managers are licensed real estate professionals, which helps ensure that every tenant issue and legal requirement is handled with precision. For example, thanks to our legal expertise and procedures, we no longer have to worry about navigating the eviction process improperly.
Five Reasons to Hire a Property Management Company
So, why does hiring a property management company make sense?
Tenant Screening: You will need help to thoroughly vet potential tenants, ensuring they’re reliable and capable of paying rent. This includes background checks, rental histories, and financial evaluations.
Automating Daily Tasks: Property management software helps streamline rent collection, maintenance tracking, and even marketing vacant units. This tech frees up your time and makes the process more efficient.
Handling Maintenance and Emergencies: From a leaky faucet to an unexpected disaster, an in-house maintenance team and trusted contractors ensure repairs happen quickly and correctly. We also manage emergency responses, limiting tenant inconvenience.
Legal Compliance: Staying on top of housing laws is a full-time job. Your property management team should ensure every lease, eviction process, and tenant interaction adheres to current legal standards.
Financial Reporting and Budgeting: Managing your rental property’s finances requires more than tracking rent payments. Make sure you can get clear, detailed reports to help you monitor cash flow and expenses and even forecast future maintenance needs.
Remember, a successful business takes a team. Owning rental investments isn’t glamorous, but it’s a proven way to build wealth. Managing them, however, is no easy feat.
Owning one property can be challenging, but owning several gets easier as you learn the system. Some owners want to be hands-on with just one property, and while we welcome involvement, it can sometimes create extra work for the management team. There are systems in place designed to benefit the investor, and trusting those systems is key.
Piece of Mind
One memory that sticks out from our early days of growing Henderson Properties is when we budgeted $50 a week for groceries during a rough patch just to keep the business going. Managing your rental property’s finances can feel a lot like that—keeping close track of every dollar. But with a professional team behind you, those stressors lessen, and you get to enjoy the rewards of a well-run property.
The benefits of hiring a property management company far outweigh the 8-10% monthly management fee. Like many of you, individual investors own most rental properties in the United States.
Staying compliant with laws, keeping up with inspections, and maintaining strong tenant relationships are key to safeguarding your property’s value. At Henderson Properties, clients often tell us that the peace of mind we provide is worth every penny.
At the end of the day, you’ve got to ask yourself—what’s more valuable: the small cost of hiring professionals or the time and headaches you’ll save in the long run?