When to Self-Manage a Rental Property

by | Jul 20, 2022 | Tips

when-to-self-manage-a-property

One of the great ways to generate passive income is by renting out your property. And if you own several properties, you have two options for managing them: self-manage or hire a property management company.

So, which is better for you? The answer depends on your circumstances. In many instances, you can manage your rental property on your own, and we’ll explore that in this article. Most of our clients at Apogee Properties started as self-managed landlords, and when their portfolio grew, they entrusted their residential and commercial properties to us.

We think this is a good start for rental property owners because it will allow them to experience and understand the process of managing a property. On top of that, they will become familiar with what a landlord is responsible for and when to leave it to the experts.

The idea of self-managing your own rental property is appealing for so many reasons:

  • Save money by not paying management fees.
  • Handle things your way – tenant selection, property rules, policies, etc.
  • A closer relationship with tenants.
  • 100% control of daily operations and making decisions.
  • Make all the necessary decisions.
  • Learn everything about property management.

But let’s be honest, managing a rental property is more than just screening tenants and collecting rent. As a self-managed or DIY landlord, you need to educate yourself on the Texas property code, especially the provisions for landlords and tenants, the Landlord/Tenant Law in Texas, and the Landlords and Tenants Guide Special Report 866 by Texas A&M Real Estate Center.

Self-managing a rental property or multiple properties is very demanding unless you have lots of time on your hands to spare. From answering maintenance requests, collecting rent, and screening tenants to dealing with bad tenants, self-management can be pretty overwhelming.

Should you manage yourself or hire a property manager?

To answer this question properly, we think we need to first answer this question: when should you self-manage a rental property? Surely, you’ve read a lot of articles about the pros and cons of self-managing and hiring a property management company. You’re already familiar with the benefits and drawbacks of being a landlord and hiring a property manager. The answer to this question, “When should you self-manage a rental property?”, all boils down to your skills and knowledge in handling the process of property management from start to finish.

So, you want to self-manage your rental property, but can you…

  • Understand and explain fair housing laws, contract laws, and local landlord-tenant laws
  • Create a lease agreement that meets all these laws?
  • Market the rental property to your target audience?
  • Conduct tenant background checks?
  • tenant background checks?
  • Handle all prospective tenants’ calls and applications?
  • Source, screen, and meet all the prospective tenants?
  • Set the right rental price?
  • Collect the full monthly payments and fees on the dot?
  • Available 24/7 for emergencies, handling maintenance and repairs?
  • Handle the accounting and bookkeeping?
  • Evict bad tenants and handle disputes legally?
  • Cleaning the unit after the tenants vacate?

If you answered “No” to most or all of the questions above, then you might want to re-think self-managing your rental property. Of course, you can handle your properties on your own. If you have 1 or 2 properties, live near the property, and have experience, then you may opt for a tenant placement only service and handle the rest. The cost still matters in this case, especially when the rental property’s ROI can’t cover the cost of the property management fee. But if you are a jack of all trades, then self-management makes sense.

When Should You Hire A Property Manager?

A property management company can do everything on the above list and more. But, of course, not all property management companies are created equal. The right Houston property management company can make your rental property a true passive investment and be a valuable asset to your investment portfolio.

Self-managing a rental property can be difficult. You can make common mistakes when self-managing. If you’re ready to stop managing rentals on your own, a property management company can help make your role as a landlord easier. If you’re unsure how to start looking for the right property manager in Houston, Apogee Properties is here to help.

Work with Apogee Properties

Apogee Properties is Houston’s Premier Property Management Company. We work and live in Houston, and our property managers are local. We’ve been in business for more than a decade, providing comprehensive property management services in the Houston region, ranging from a studio condo to a multi-family million-dollar estate. Contact us to learn more about our property management services, and what we can do for you and your rental property.

Get your property managed today!