The Pitfalls of DIY Property Management: Why You Shouldn’t Self-Manage Your Rentals  

According to a survey by the National Association of Residential Property Managers, nearly 80% of self-managing landlords find it difficult to find and retain tenants. Another study by All Property Management found that self-managing landlords experience a 65% higher eviction rate than those who hire a property manager. What do these studies imply?  

A Wise Choice for Landlords

Investing in rental properties can be a lucrative business venture, but it’s important to approach it with caution. While many landlords opt to self-manage their properties to save money, this decision can lead to a number of pitfalls that could end up costing more in the long run.

In this article, we’ll explore the reasons why landlords should avoid DIY property management and the benefits of hiring a professional property manager. Whether you’re a seasoned investor or just starting out in the rental property market, understanding the potential risks of self-management can help you make informed decisions that lead to long-term success.

So let’s dive in and discover why you shouldn’t self-manage your rentals. 

The Time and Distraction Challenges of Self-Managed Rental Properties

One of the primary reasons investors choose to self-manage their properties is to reinvest their cash flow back into their business. However, taking on the responsibilities of property management can be time-consuming and often leads to distractions from other important aspects of running a business. 

Moreover, self-managing rental properties can also affect job performance, leading to lost opportunities for promotions or raises. Even one or two rental properties can take up all of a landlord’s free time, leaving them with little time for anything else. 

Quitting a full-time job isn’t always a viable option for landlords who own a small portfolio of rental properties, as it may not generate enough cash flow to support themselves. This is where hiring a property manager comes in.

Property managers are professionals who specialize in managing rental properties and can take on many of the responsibilities that landlords may not have the time or expertise to handle on their own. 

Hiring a property manager can help landlords save time, money, and stress in the long run. Property managers can take care of tasks such as marketing and advertising, screening tenants, rent collection, maintenance and repairs, and dealing with legal issues that may arise. 

In addition to taking care of day-to-day tasks, property managers can also provide valuable insights and advice to landlords based on their experience in the industry. Property managers understand local laws and regulations and can help landlords avoid costly mistakes that could lead to legal trouble. 

Indeed, while self-managing rental properties may seem like a cost-effective solution, it can lead to numerous pitfalls that can ultimately cost more in the long run. Hiring a property manager can help landlords save time, money, and stress while providing valuable insights and expertise to help their businesses thrive.