When Do You Need a Property Manager When Renting Out a Unit on Your Own Property?
With an increasingly aging population, more and more homeowners are turning to multi-generational living arrangements, whether constructing a "granny flat" as an addition to a current home or purchasing a parcel of land that holds several homes. If you're not currently in need of this extra living space, you may be considering a rental arrangement.
But while the idea of renting out a home on your own property can be appealing, you may run into some issues. There are some distinct advantages that can be realized by using a property manager for this transaction rather than trying to handle it yourself. Read on to learn more about some of these advantages and the factors you'll want to consider when renting out your unit.
Anonymity and Buffer Space
As any seasoned landlord can tell you, managing rentals is far more than sitting back and collecting monthly checks. Even low-maintenance tenants may need you to make minor repairs, arrange service calls, or deal with utility companies, while high-maintenance tenants may feel it necessary to notify you whenever they notice something amiss in the unit or are upset by a neighbor's barking dog.
This lack of boundaries can be even more apparent when you, as the landlord, are literally right next door. By using a property manager, you'll provide yourself with a built-in buffer and hopefully prevent some of the late-night phone calls or knocks on the door with news of a minor inconvenience.
Some homeowners may even opt for total anonymity, putting forth the property manager or management company as the home's "owner" to avoid dealing with questions or comments from the tenants. This can allow you to enjoy the benefits of homeownership and the benefits of renting without dealing with many of the complications that can come from commingling the two.
Cost Savings
If you're new to the world of property management, you may struggle to make decisions: everything from the amount of rent to charge to how you'll need to screen your tenants can be uncharted territory.
Real estate managing services are well-versed in local pricing and tenancy trends, and can help you set a fair but market-priced rental rate while looking for some common red flags among the tenant applications. Relying on a property manager's experience and expertise can help prevent you from making an unwise tenant selection or pricing your unit too low (or high) for the market to bear.
