DIY Property Management vs Hiring a Property Management Company

Sep 23

Property owners must make a crucial decision when managing rental properties: DIY property management vs hiring a property management company. Both strategies offer benefits and drawbacks. You can decide based on elements like:

Financial budget
Your or the company’s expertise
Project’s duration

To help you make the right decision, Bloom Property Management London Ontario explains the debate on DIY property management vs hiring a property management company in Ontario.

What is DIY Property Management?

Do-it-yourself property management describes the process of overseeing rental properties without the help of a professional. Landlords are in charge of every part of property management, including:

Advertising unoccupied apartments
Collecting money
Taking care of maintenance problems

Benefits of DIY Property Management

Following are the advantages of taking the entire responsibility of property management on yourself:

Monetary Budgeting

Saving money is the most alluring advantage of managing your own property yourself. Typically, property management firms take a percentage (between 5% and 10%) of the monthly rental income. Landlords can retain these revenues by handling the property themselves.

Direct Control

Landlords can keep total control over their properties with DIY management. They have the authority to:

Choose renters
Set rental guidelines
Personally supervise property’s maintenance

This degree of participation is more desirable for landlords who wish to have a say in essential investment choices.

Direct Connection with Tenants

When you are the property manager, you can directly connect with renters. This can strengthen bonds and help you better understand the tenants' requirements, leading to long-term tenancy and fewer problems.

Drawbacks of DIY Property Management

Some disadvantages of self-property management are:

Time-Consuming

Independent property management takes a lot of time and work. It may not be easy to manage tasks like:

Answering maintenance requests
Responding to tenants’ queries
Ensuring compliance with the state’s law

Insufficient Expertise

Property management necessitates you to comprehend the following:

Local market circumstances
Property rules
Tenant legislation

DIY landlords may not have the required experience to manage these details effectively. This inefficacy can result in disagreements in court or lost opportunities to increase rental revenue.

Difficulties in Tenant Screening

To prevent troublesome tenants, thorough tenant screening is crucial. DIY landlords find it difficult to perform comprehensive background checks without the assistance of professional resources. It raises the possibility of choosing untrustworthy renters.

What is a Property Management Company?

A property management firm is an external organization that supervises your rental properties' day-to-day operations. These businesses take care of everything, including:

Rent collecting
Property upkeep
Tenant screening
Necessary advertisement

Also, check out our home maintenance services.

Benefits of Hiring a Property Management Company

You can enjoy several benefits of hiring expert property managers. A few of them are:

Expertise and Resources

Property management firms contribute resources and expertise from their professional backgrounds. They know rental market trends, tenant rights, and local laws. Their knowledge can enhance rental income and guarantee legal compliance.

Time-Saving Practicality

Landlords can assign all property-related duties by hiring a property management firm. The management business takes care of daily duties, relieving landlords of the stress of active engagement.

Effective Rent Collection

Companies that manage rental properties have procedures for collecting rent and following up on late payments. This reduces the possibility of delinquent rent or eviction while ensuring steady cash flow.

Drawbacks of Hiring a Property Management Company

Some property managers may make you face these challenges:

Cost

The expense is the biggest drawback of using a property management firm. The management charge is usually deducted from the rent, which might reduce a landlord's earnings. Landlords with a smaller rental portfolio may find this particularly difficult.

Reduced Direct Authority

The property management firm can be a source of disconnection for hands-on landlords. They may not have much opinion in choices about:

Upkeep
Tenant selection, and
Other crucial issues

Differential Service Excellence

Not every property management firm provides the same caliber of assistance as ours. Some might not be responsive or take good care of the property, which would make both landlords and tenants unhappy.