Investing in real estate is a great way to grow your wealth over the long term and secure a comfortable retirement. However, maintaining a property is no easy feat, especially if you’re renting it out!

Property owners have a ton of responsibilities from advertising their properties and screening tenants to addressing repairs and tenants' complaints promptly. 

In addition to these day-to-day tasks, landlords must ensure their properties comply with numerous laws and regulations. With so much to do, it’s easy to feel burnout. That’s why so many investors choose to partner with property managers. 

Property management companies handle various tasks for property owners, including tenant screening, rent collection, maintenance, repairs, and enforcing lease agreements. This provides owners with hassle-free property management experience and peace of mind. 

If you’re not sure whether you should partner with a property management company, keep reading! In this article, the experts at Domain Property Management will go over the pros and cons of self-managing and hiring a property manager so that you can make an informed decision.

The Pros and Cons of Self-Managing

Managing your rental property by yourself will save you money, as you won’t have to pay property manager fees. Not partnering with a property manager also means that you’ll have complete control over your rental. 

You’ll be solely responsible for making important decisions, such as selecting tenants, making renovations, and how to spend your earnings. Moreover, self-managing can be a great learning experience, especially if you’ve never taken care of a property.

However, it’s important to note that self-managing a rental property is not an easy feat. It requires 24/7 availability and the ability to address problems promptly. Other challenges of self-managing include the following:

Time-Consuming

Managing a rental property effectively requires around-the-clock availability. After all, you never know when tenant requests may come up. Moreover, landlords have to take care of time-consuming tasks, such as inspections, property upkeep, financial tracking, and legal compliance.

Complicated Tenant Relations

Dealing with tenant-related issues such as late rent payments, complaints, and disputes can be challenging. Fostering positive landlord-tenant relationships takes plenty of time and dedication. 

Rent Collection Difficulties

Ensuring timely rent collection can be challenging, especially when dealing with tenants who consistently pay late or fail to pay. Landlords must establish clear rent policies, communicate expectations to tenants, and enforce consequences for late payments. 

Legal Compliance

Ensuring that your property complies with the local rental laws, fair housing regulations, and property codes requires continuous monitoring and understanding of legal obligations. Given that property laws tend to change significantly over time, you’ll have to dedicate plenty of time to legal compliance tasks.

Property Marketing Challanges

Filling out your vacancies can be an incredibly challenging process. To be able to lease your rental, you’ll have to invest time and money in effective marketing strategies, thorough screening procedures, and efficient turnover protocols, among other things.

Limited Industry Knowledge

Even if you’ve lived in a certain area all your life, you won’t have the same market knowledge a seasoned professional has. When you partner with a property manager, they’ll tell you which are the best areas to invest in, what neighborhoods have a higher rent, and how much to charge for your rental. When you self-manage, you’ll have to research this information thoroughly.

Pros and Cons of Partnering with a Property Management Company

One of the biggest drawbacks landlords see in hiring a property manager is the cost. In reality, property management fees are not as big as some investors might think. 

Here are some of the reasons why many real estate investors choose to partner with seasoned property managers:  

Time-Saving

Outsourcing your property management tasks to professionals will save you a lot of time. You can use that extra time to find ways to expand your portfolio or improve your rental.

Expertise and Experience

Property managers typically have years of experience under their belts. They know how to effectively manage a rental property and have a sound understanding of local rental laws. 

Moreover, they can give you insider knowledge of the local market. All of this will help ensure the success of your rental investment.

Streamlined Property Maintenance 

Property managers work with a team of seasoned contractors and vendors to ensure your rental property is always in good condition. Additionally, they have the resources to handle emergencies and maintenance requests promptly. This gives you the peace of mind of knowing your investment is always in good hands.

Effective Rent Collection 

Property management companies have systems in place to track payments, issue notices, and take necessary actions to address late or missed payments. This ensures that you always get your money on time, without the hassle.

Marketing and Tenant Screening

Property managers handle property marketing, advertising vacancies, and screening potential tenants. With their effective marketing strategies, you’ll be able to fill your vacancies in no time.

Financial Management 

Property managers can handle financial tasks such as budgeting, accounting, tax preparation, and financial reporting. They can also provide you with detailed financial statements and optimize your rental income and expenses for better profitability.

Peace of Mind

By delegating the day-to-day operations of your rental to property management, you’ll reduce your stress, minimize risks, and have more free time. 

Bottom Line

Self-managing can seem like a great way to save money and retain control of your rental property. But the workload won’t let you enjoy your earnings, as you won’t have any free time to enjoy your profits. 

On the other hand, hiring a property manager may signify additional expenses, but the benefits are worth it. Seasoned property management companies like Domain Property Management can help you save time, streamline property upkeep and rent collection, fill your vacancies quickly, and provide you with peace of mind. 

Are you looking for a seasoned property management company in Chicago? Contact Domain Property Management! Our team is ready to help you make the most out of your investment.