When rental property owners first start, they consider overseeing their investment’s day-to-day operations themselves. This is because, at first glance, its obligations (e.g., collecting rent, screening tenants, etc.) seem like manageable, simple tasks. This leads them to believe that they can successfully do it on their own, but this couldn’t be further from reality.
The truth is that managing a rental property requires a specific set of skills that the average person may not naturally possess. It’s also worth noting that the nuances of Florida’s real estate market are ever-changing, making matters more complicated.
So if you’re considering the self-management route, you may want to re-evaluate your choice. In this article, we’ll tackle the reasons why self-management isn’t the wisest choice for Florida rental property owners. By delving into the potential pitfalls, you can make well-founded decisions and secure the success of your property for years to come.
1. It puts your occupancy rate at risk
Finding tenants isn’t easy. While it’s undeniable that there are plenty of people looking for a new place to stay, there won’t be knocking on your door. It takes a proactive approach to attract tenants, and this involves a tailored marketing plan. Failing to master this art puts you at risk as it can lead to lower occupancy rates, which impacts your cash flow.
Professional property managers are experts when it comes to marketing and can position your property to draw tenants in. Plus, they maintain a list of potential tenants who are ready to rent with you. By tapping into their network, they can reduce the time it takes to suitable tenants, making sure that your property is occupied at all times.
2. It raises the risk of renting to the wrong tenants
First-time landlords tend to fall for the temptation of renting to the first tenants that show interest. However, this hasty practice will only put the property at risk.
Remember that the tenants you choose will be responsible for caring for your property. If you don’t do your due diligence by evaluating their employment status, rental records, prior evictions, etc., you may be setting yourself up for failure.
Collaborating with a reputable property management company can lessen the risk of renting to “sketchy” tenants. They have tried-and-tested vetting procedures in place, and will sift through all applications to find the right tenant for your property.
3. It prevents you from expanding your portfolio
Self-managing is a time-consuming and tedious task. You’ll have to devote most of your time to overseeing your rental property’s daily operations, leaving you with little room for other matters. In most cases, it can even prevent you from pursuing other investment opportunities This means you won’t be able to make more money, which is probably why you’re in the rental business in the first place.
When you work with a property management company, you’ll have more time to source new real estate investments. Furthermore, they can even help you carry out market studies to determine the ideal place to invest in. Some can even assist you in searching for your next investment property!
4. It puts you at risk of legal issues
Failure to abide by the law is one of the biggest mistakes you can make as it can potentially put you out of business. If you self-manage your rental, you have to be well-versed in all laws governing your property. Even if can grasp legal concepts easily, note that the law changes constantly—if you aren’t prepared to stay abreast, you may find yourself in legal trouble.
Instead of DIYing property management, why not work with a property management firm in Florida? Not only will they monitor the law, but they’ll also implement changes to maintain full compliance. They’ll be proactive, making sure that all of your activities are carried out according to the current laws, allowing you to focus on other duties.
5. You may make costly mistakes
When you choose to self-manage your property, you may commit missteps that can put your venture at risk. Note that you do not have the experience that professionals do. You may unknowingly create a chain reaction of issues if you commit a seemingly small error. These mistakes not only put delays on your plans but also impact your bottom line.
To mitigate this risk, partner with a property management company that has years of experience they can leverage. They can anticipate issues and deal with them in the most cost-effective and efficient way, saving you from unnecessary costs.
6. You’ll have to face sensitive issues yourself
Unfortunately, most rental owners who self-manage their properties are prone to letting things slide. When a tenant pays their rent late, they’re too forgiving. Or, when a tenant does something that strictly goes against their lease agreement, they allow it anyway. While tenant’s mistakes may seem small, this leniency can cause a variety of issues down the line. The reality is that property management requires the skill to solve—not tolerate—sensitive situations, such as tenant disputes, evictions, and more.
If you find it challenging to assert your authority, partnering with a property management firm is your only choice. They’ll act as an impartial third party, dealing with issues such as evictions, tenant disputes, etc. without any personal opinion. In that way, they ensure that your property remains well-maintained, that tenants respect the terms of their contract, and that your goals are met without compromise.
Searching for “property managers near me”?
Instead of managing your own property, leave this task to skilled property managers in Florida. Consider the services of Luxury Property Care, a full-service property management company that will tackle all of your tasks, drawing from our years’ worth of experience in the local market. By collaborating with us, you can get the most out of your investment, while navigating the legal, financial, etc. complexities that come with property ownership. Our dedicated team will do what it takes to ensure that your investment thrives over the years.