If you ask most DIY landlords why they chose to manage their multifamily rental properties themselves, the reality is that they will tell you a variety of reasons but, the most common reason is that they think that self-management means they will save money.
Sadly, most “DIY landlords” end up regretting their decision to manage their property themselves and have a variety of tasks that they actually dislike about being a multifamily landlord.
Yes, it’s true that most DIY landlords hate dealing with rent collection because some tenants may not pay their rents on time and have to be “chased down” in order for the owner to collect the rent.
What’s even worse for the DIY landlord is having to deal with tenants who lie or make excuses for why they can’t pay their rents on time. This adds to the complexity of being a DIY multifamily landlord and makes the landlord’s life a lot more complicated than it should be.
No Time for A Real Break
Although the tenants may not be calling the landlord all the time with problems or issues related to their multifamily rental property, the truth about DIY landlords is that they just don’t have time to take a “real break” for themselves.
A DIY multifamily landlord will always be thinking about their properties and tasks like maintenance or improvements rather than being able to enjoy earning passive income from their multifamily rental properties while they live a normal life.
Being The “Bad Guy”
Yes, earning consistent monthly cash flow from a multifamily rental property is great but having to be the “bad guy” isn’t fun. This can happen when a DIY landlord has to call their tenants to collect the rent, follow up with a tenant who is not abiding by their lease, or evict a problem tenant.
Most DIY landlords do not like maintenance at all because of the reality that the average person isn’t “handy” or skilled at doing maintenance themselves. When someone who is unskilled at maintenance tries to work on a project or perform a repair, the results are often shoddy work that has to be redone by a paid professional.
What Are the Solutions to These Problems?
The obvious solutions to the problems mentioned in this article are for a DIY landlord to hire a multifamily property management company.
A property management company will save you the time, money and hassle of having to manage your investment property yourself so you can focus on growing your portfolio of investment properties.
Some of the services that a property management company will offer you include:
Tenant Screening – Your property management company will screen and place the most qualified tenants in your multifamily property.
Rent Collection – Obviously, one of the most important parts of owning rental properties is rent collection. When you hire a property manager, you will have confidence that they will always collect the rent from your tenants on time each month so that you won’t have to worry about doing any rent collection yourself.
Maintenance – Have you changed toilets or did you take care of minor maintenance issues in the past? With a property management company, their staff will handle every aspect of maintenance so you can rest easy in knowing that should a maintenance issue arise, it will be handled by your property management company.
Customer Service – Another great reason to hire a property manager is customer service, they will be the “middle man” for your investment property so that anytime your tenant has a question or needs assistance, they will contact your property manager instead of calling you.
Accounting – Besides the reasons that we’ve offered you for hiring a property manager so far, another reason to hire a property management company is that they will handle all of the accounting for your rental properties. You can also count on them to compile all of the financials for your property at the end of the year so you don’t have to do any that work yourself.
Being a DIY landlord is something that should only be temporary, especially if your desire is to build a portfolio of investment properties in your area, or elsewhere in the United States.
What to Look for When Hiring A Property Manager
Before hiring just any property manager, there are a variety of things that you should look for when hiring a property management company including the following.
Experience – Your property management company should have at least 2 years of experience because this means that they have sufficient experience with managing rentals and should be able to handle any situation that arises at your rental property.
Thankfully, with the Internet, you can research a property management company online and verify their level of experience and also read feedback from their clients as well. To do this, look for reviews on Google, Facebook, Yelp and the Better Business Bureau.
Team – Never settle for hiring a property management company that consists of just one person, always a company that has a verifiable team because that team means that every aspect of property management from accounting to maintenance will be handled by specific people.
Area of Expertise – Make sure that the property management company that you hire does specialize in managing multifamily properties because the needs of multifamily properties are different than single-family and you want someone to manage your rentals who know the industry.
Customer Service – We’ve offered you a lot of tips so far for what you should look for in a property management company. Another essential tip to add to the list is for you to hire a company that also offers excellent customer service and is available when you call plus responds to your emails or other messages.
Strong Policies – When hiring a property manager, you also want to hire a company that has strong policies in place, especially when it comes to things like rent collection and accessing late fees.
Fees – Last of all, but most important, before saying yes to hiring a property management company, you should also verify their fees to find out what fees will be accessed. This is very important because property management companies have been known to hit their owner clients with fees, even when their properties are sitting vacant, so you should confirm this before hiring a company.
DIY property management is something that many landlords choose to do regardless if they are managing a multifamily or single-family property.