Making income running rental properties is the goal for many investors. They can escape their day job and focus on growing their net worth. However, some property owners don't research enough into how much work it takes to manage a property.
That's why only 45% of investors manage their own properties. The question is, should you use turnkey property management or do the work yourself? Let's look at the pros and cons of each option.
In-House Property Management
In-house property management is great for owners of residential property who want to be hands-on with their investment portfolio. If you live near your property or have a network of reliable contractors, you can handle maintenance and other tasks instead of outsourcing the work.
This comes with a few advantages:
- Less costly than hiring a property management company
- More control over the management of your properties
- Rewarding experience by offering excellent service to your tenants
However, managing your property does come at a cost. Here are some of the drawbacks to consider:
- Takes more time than using a property management company
- May struggle to find quality tenants and help if you don't have a network
- A lot of things to learn because of all the tasks you need to handle
But if you're hands-on and don't mind learning, in-house management may be an excellent choice.
Third-Party Property Management
Third-party property management is a great option for property owners who want to take a hands-off approach to property management. Instead of hiring an in-house staff, investors can turn to the staff of a management company for tenant screening, maintenance help, and more.
Here is what you can look forward to with third-party management:
- Save time compared to in-house management
- Get quality workers without building a network yourself
- Less costly mistakes because of inexperience
But there are some cons to third-party management worth considering:
- Less control over the management of your properties
- Less hands-on property management experience
- Potentially less knowledge about what happens on your properties
However, most people find that the pros of professional management services outweigh the cons if they lack the time for proper management.
Choosing In-House or Third-Party Management
Using in-house or third-party management may be a challenging decision. Ask yourself these questions to help decide the best choice for you:
- Am I willing to dedicate enough time to my residential properties?
- Do I have the resources to offer amazing service to my tenants?
- Can I market efficiently enough to attract high-quality tenants?
- Is my time worth more than the cost of third-party management?
Answering these questions will help direct your decision when answering this question. For many landlords, it's well worth using third-party management services to help them spend their free time growing their real estate portfolios.
Invest in Turnkey Property Management
Working with third-party property managers offers a lot of benefits to property owners. They can save time in management and direct their focus to other parts of their life or growing their business. Find a turnkey property management solution today to get the help you need.
Are you ready to hire a property manager for your Omaha real estate? Our Aksarben Property Management team has everything you need to manage your properties, from tenant acquisition to financial help. Contact us to learn more about our services.
