DIY Rental Property Maintenance vs. Property Management Services

It is easy for new landlords to get stuck on whether to pay for property management services or do it themselves. This situation often arises when the landlord does not know the responsibility of property ownership and the benefits and pitfalls of the two options.

Landlords must do thorough research on the advantages and disadvantages of the two options before deciding. This is because whichever decision they make will impact them financially and time-wise.

You can also search for queries like “Best Property Management Company in North York” to assess your area’s availability of services providers.

Here are some noteworthy pros and cons of DIY rental property maintenance vs. hired property management services.

Property Management Services

A property management service provider essentially acts as the middleman between the tenant and the landlord. The agency will communicate to both parties important information about the rental payments, repairs, and maintenance of the property.

Advantage: Expertises

Property management agents are experts in property management. They are well-versed in dealing with delinquent tenants, brokering deals with maintenance providers, and systemizing all rental processes.

Advantage: Fewer Property Vacancies

Agents have access to a broader range of tenants, thus decreasing the likelihood of vacant properties.

Advantage: Thorough Tenant Screenings

Finally, property managers have relationships with other rental property managers; therefore, they can call them to ask for information such as tenant payment habits and their history of property damage.

Disadvantage: Fewer Updates on Issues

The major disadvantage of hiring a property manager is that the landlord is often not updated about menial day-to-day issues. If you are a hands-on landlord, you will find this very upsetting and a hindrance between you and your property.

Disadvantage: High Management Rates

Agents may require a very high percentage of the rental premium. This is a fixed rate and thus gives the landlord less room to improve the property or purchase another one.

Disadvantage: Property Maintenance

DIY property maintenance is essentially landlords doing the work of a property manager themselves. This kind of maintenance is preferable by a hands-on landlord who wishes to know about everything concerning their property.

Advantage: Preventative Maintenance

Knowing the day-to-day issues puts landlords in a position to conduct thorough preventative maintenance. Preventative maintenance is being proactive instead of reactive to problems as they arise.

Advantage: Calculating Rental Premium

DIY property managers can factor in additional expenses of running the rental property such as rates, levies, taxes, security upgrades, renovations, and garden services.

Advantage: Relationship with Tenant

Landlords are better positioned to develop an authentic relationship with their tenants, thus creating a transparent environment where tenants can express their concerns without fear or hesitation.

Disadvantage: High Repair Costs

Landlords may be subject to high repair and maintenance costs from repair service providers. This is because landlords will be inclined to fix issues as they arise instead of bulking them together into one invoice.

Disadvantage: Time Consumption

Managing a rental property requires around-the-clock availability and immediate response. Landlords with families, full-time jobs, or other businesses will not cope with the pressure.

Even so, the decision you make must align with your lifestyle.

If you want to have the freedom of spending time with your family or doing other businesses, then hiring a manager will be your best bet.

However, if you are more hands-on and enjoy the thrill of running after delinquent tenants and getting text messages about busted pipes late at night, then the DIY options are for you.