Is Managing Your Own Rental Property a Smart Decision?
Managing your own rental property may seem like the best approach, but there are risks. Hiring a property manager may actually save you time, money and potential headaches down the road.
So you’re a landlord at a crossroad between deciding to hire a property manager or to continue handling all the tasks that come with having tenants and a rental property. While taking the ‘DIY’ (do it yourself) approach seems more cost effective, you may run into major challenges that can end up costing your time and money.
Benefits of Managing Your Own Rental Property
Cost Savings
The number one benefit of self-managing a rental property is eliminating property management fees, allowing landlords to retain more of their rental income. Property management companies in Ontario can cost anywhere between 8% to 12% of the rental income per month, which is a significant chunk to its rental cash flow.
Direct Control
When you manage your own property, you have full authority over tenant selection and maintenance decisions, ensuring everything aligns with your preferences.
Some property management companies offer in-house real estate services, maintenance and accounting services - so if you’re a landlord who prefers to work with your own professionals, we suggest you inquire about this if you are considering property management services.
3. Personalized Tenant Experience
Self-management allows you to build direct relationships with tenants, address concerns promptly, and foster a more engaged landlord-tenant dynamic. If this is something you are looking to experience with your tenant, then cutting out the ‘middleman’, being the property manager, and having a hands-on approach will allow you to build a relationship with your tenant.
5. Deeper Property & Market Knowledge
By being actively involved, you gain valuable insights into your property’s condition and the local rental market, helping you make informed long-term investment decisions. We always suggest having a knowledgeable real estate agent in your corner to help guide you with professional insight of the real estate market.
Challenges of Managing Your Own Rental Property
Time Commitment
Handling tenant inquiries, coordinating maintenance, and managing leases can be time-consuming, particularly for landlords with multiple properties or other full-time commitments. At times, it may seem low-maintenance to manage your rental properties on your own, but there may be certain seasons when handling tenant issues, complaints, maintenance and repairs are a frequent thing.
Legal & Regulatory Compliance
Landlord-tenant laws and fair housing regulations can be complex. Hiring a professional property management company who has a wealth of experience in properly navigating through the Ontario Landlord and Tenant Board laws and regulations can potentially save you lots of headaches in the future.
Emergency & Maintenance Challenges
Unexpected repairs or tenant emergencies require immediate attention. Without a management team, you must be available 24/7 or have reliable contractors on call. If you travel a lot or if you live far from your rental units, responding to emergencies can be challenging.
Risk of Burnout
Balancing property management duties alongside other responsibilities can be overwhelming, particularly if managing multiple units or if you live far away from your investment. The stress of handling ongoing tenant needs can be very time consuming.
Tenant Relations & Conflict Resolution
Rent collection, lease enforcement, and handling disputes can be challenging, particularly in sensitive situations. A property manager can act as an intermediary to maintain professionalism and minimize conflict.
So Should You DIY or Hire Support?
Deciding whether to self-manage your rental property depends on your time availability, expertise, preferences and long-term goals. While managing your own property can offer financial benefits and greater control, the demands and potential challenges may outweigh the advantages for some landlords.
Assess your comfort level with legal compliance, tenant relations, and maintenance responsibilities before making a decision. Interview many local property management companies to see which service aligns with your preferences and needs the most.
If you need advice on your rental properties or landlord journey, reach out to our team today and we will be happy to guide you!