Owning an Antioch, CA rental property offers you the opportunity to generate a lot of extra income. That said, owning a rental property also comes with a lot of responsibility. The amount of time and effort that goes into self-managing an investment property is often underestimated.
If you’re ready to reap the financial benefits of being a landlord, but don’t want the hassle of handling the day-to-day operations, it’s time to consider hiring a property manager to help.
Not sure hiring someone else to care for your property and tenants is the right choice? Read on to find out why you shouldn’t try to self-manage your rental property.
Why You Shouldn’t Self-Manage a Rental Property
Hiring a property management company is not an easy decision to make. After all, entrusting your property to someone else is a big deal.
However, you have a lot to gain by using an experienced property manager. Not to mention, there are plenty of reasons not to self-manage your rental property.
1. Your Portfolio is Growing
It’s one thing to self-manage one rental property in Antioch. Yet, as your portfolio begins to grow, you’re sure to notice the workload growing too. The more rental properties you own, the harder it becomes to balance the amount of work required by you.
As you invest in more rental properties, you risk sacrificing things like:
- Time with Family and Friends: spending time with family and friends is important. If you’re busy managing property repairs, rent collection, and paperwork, the time you have to spend with loved ones will suffer.
- Your Job: many people invest in rental properties to fund their vacations, help with retirement, or pad their bank accounts. This means that many landlords have full-time jobs in addition to having to self-manage their rental property. If your portfolio grows, there’s a chance your job will suffer as a result.
- Free Time: having a moment of peace after a long day is something most adults crave. The thing is, self-managing a rental property is a 24/7 gig. If you value your free time, trying to self-manage a rental property might not be the best decision.
When you hire a property management company, it doesn’t matter how big your portfolio grows. This is because your property manager will take on all the extra work that comes with additional rental properties.
2. Finding High-Quality Tenants is Tough
Finding tenants to lease your rental property is easy enough to do. Finding high-quality tenants for your rental property is another story.
One of the hardest parts of being a landlord is finding the right tenants. You want tenants that will care for your property as though it is their own. In addition, you want tenants that will follow the rules of the lease and pay their rent on time. And if they want to stay long-term and help you lower your turnover rate, it’s even better.
That said, tenant screening is a complicated process, despite what you may think. There are lots of things to look into when screening a potential tenant:
- Criminal background
- Credit scores
- Rental history
- Employment and income verification
On top of that, you’ll need to attend property showings, process applications, collect money, and draft lease agreements. If you don’t have the time or experience to this right, you could find yourself with problem tenants in your rental.
3. You Live Far Away from Your Rental
Sometimes landlords find amazing rental properties far away from their primary residences. Passing up a great deal just because it’s far away is not something good investors want to do. However, if you’re trying to self-manage your rental, making a far drive every time your tenant needs something will get old fast.
If you have rental properties that are not near your home, it’s a good idea to look for a local property management company near you for some help.
4. You’ll Have to Brush up on the Law – a Lot
As an Antioch, CA landlord, it’s your responsibility to know all the federal, state, and local landlord-tenant laws. No judge is going to accept an excuse of ignorance.
If you want to avoid legal trouble, it’s best to hire a knowledgeable property management company to help you. A good property manager will understand things like:
- Anti-discrimination laws
- Fair housing laws
- Security deposit rules and regulations
- Habitable housing laws
- Contract rules as they relate to your lease agreement
- Required disclosures
- Tenant privacy laws
- Retaliation rules and regulations
- Proper eviction procedures
If this sounds like a lot to you, trust your gut because it is. And the truth is, landlord-tenant laws are always changing and evolving. Keeping up with the law is not for everyone, and sometimes hiring an experienced professional whose job it is to know the laws is the best solution.
5. Dealing with Tenants Can Be Difficult
There are plenty of reasons why landlords and tenants might bump heads. Sometimes it’s the tenant’s fault. Sometimes it’s the landlord’s fault. In the end, when a landlord-tenant dispute occurs, it’s no fun for either party.
It’s likely your investment property means a lot to you. After all, you’ve put a lot of time and money into starting a rental property business for yourself. When you self-manage a rental, it’s hard not to take things like landlord-tenant disputes personally. Plus, you might just not be a people person. However, when you choose to handle things yourself, you’re forced to be personable and deal with your tenants directly whether you like it or not.
6. You’re Responsible for All Things Rent Money Related
This may seem obvious, but not everyone understands all that comes with owning a rental property. This is especially true when it comes to rent collection.
As a landlord, you’re in charge of things like:
- Lease provisions that include rent rates, grace periods, and eviction clauses
- Rent collection methods
- Security deposit collection, safeguarding, and use
- General accounting and recordkeeping
- Eviction proceedings
Again, when you self-manage your rental property, you’re going to need to take on a lot of extra work when it comes to rent money alone. This is not including things such as maintenance and repairs, property inspections, and much more.
7. DIY or Hire a Contractor – The Choice is Yours
Whether you consider yourself a handyman or prefer to hire professional contractors to make repairs on your rental property you’re going to be out of something – time or money.
45% of rental property owners claim that emergency repairs and preventative maintenance are a major source of stress.
The truth is, things are going to break in your Antioch, CA rental property. And trust us, tenant emergencies are not going to happen between normal business hours. That means there’s going to come a time when you get a midnight call to unclog a toilet, fix a water leak, or worse.
If after-hours calls are not your thing, you don’t know how to fix anything, or you don’t know who to call when something breaks in your rental, self-managing your property is not a good option. Instead, hire a reliable property management company with a trusted Rolodex of contractors and an on-site maintenance crew to take care of things for you.
8. You Could Lose Money
Of course, with any business, you stand to lose money. That’s the risk you take when you invest, even in the real estate industry. But when landlords choose to self-manage their rental properties without enough experience to reap the rewards, financial trouble often follows.
It takes a lot of know-how to boost your ROI as a landlord. By going it alone, you have the potential to miss out on all the little things that can increase the value of your property, garner you a higher rent rate, and get you long-term tenants.
Do you want help managing your Antioch rental property? If so, contact us today and see how we can help you manage your investment property.
At Blue Line Property Management, we know the hard work it takes to manage a rental property from the moment it’s vacant to the moment a high-quality tenant is signing a lease renewal. Luckily, our experienced property managers have the knowledge, skill, and personality to handle everything from property showings to tenant screening and rent collection to property inspections. Avoid the frustration of having to self-manage your rental property and let us take on the hard work for you. When you do this, you’ll find out what it’s like to earn a truly passive income without all the headaches.