**This article was originally written on January 24, 2017, but was updated on December 15, 2020.
Among Long Island property management companies, you’ll hear a similar response to the idea of managing your property yourself. You can do it yourself, but you might not be saving the money or the time you think you are. Before you decide who will manage your property, consider what’s most important to you and what you are willing to give up. If you’re willing to spend your time serving as the landlord and have the resources to find qualified vendors that can assist with maintenance at discounted rates, then the DIY method will probably work for you. But if you have other plans for your time, you may want to consider the benefits of hiring a property management company instead.
An investment property requires time and money. But, if managed correctly, you can see significant returns on your investment and be able to spend your free time where you want to. But, if you still want to do it yourself, consider these three risks first.
1. Managing a Rental Property is Hard Work
Securing a tenant is just the start of the process of real estate investing. Unfortunately, finding a quality and qualified tenant usually takes a long time. You’ll have to advertise, organize showings, and work after hours and weekends until the property is leased. It can be a grueling process, especially if your property is vacant for a couple of months. By contrast, a property management company, which has placed thousands of tenants in thousands of properties, handles all of this for you.
2. Setup is Even More Work
Once you’ve found that perfect tenant, the work is far from over. Responsible property management starts with the application and screening. Credit reports, background checks, sex offender lists, and rental histories should be checked on all rental applicants over 18. Again, this costs both time and money. This is a necessary process to be responsible for both your property and the community. Don’t forget to review the Federal Fair Housing Act and local and state ordinances and statutes to ensure you do not break any laws or renting regulations.
3. You’ll have to Deal with Ongoing Maintenance, too
Real estate investments are like anything else in life—things will need to be repaired or replaced over time. It’s all part of the normal wear and tears on the house. The bigger appliances like heaters or air conditioning units need regular maintenance. You will need to decide if you can take care of these things yourself or need to hire someone else for the job. When you have tenants, you will also have regular requests from them for repairs.
When looking at the cost and time commitment of maintenance and repairs, you may be considering the benefits of a local property management company. Doing things yourself can have its rewards; perhaps it can help you develop a more personal relationship with your tenants. But doing things yourself also comes with some risk. A property manager, like Real Property Management Innovation, can mitigate those risks for you.
If you think you can handle property management minutia, doing it yourself might be the right choice. However, if you value your time, your money, and your sanity, hiring a property management company is the right fit for you. Contact us online or give us a call at 516-570-9275.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.