Deciding to self-manage your investment property or to hire a professional property management company really comes down to the amount of time, expertise, and tolerance for risk you have. Owning real estate in Colorado Springs can be a lucrative path to cash flow and long-term returns. However, it also comes with some liability. Professional management can protect you and your asset.
One misconception that’s important to dispel is that you’ll save money by managing your own property. This is not always true. You might be avoiding the management fee every month, but it’s possible you’ll lose money on expensive maintenance, longer vacancy periods, or a property that’s priced incorrectly. If you make a legal mistake, you could find yourself facing fines and penalties that go far beyond what you would have paid a professional property manager.
If you’re trying to decide whether you should self-manage or partner with a Colorado Springs property management company, consider some of these important issues.
Can You Effectively Lease and Manage Your Rental Home?
Pricing your property is the first step in renting it out. You need to know the market and you need to know what competing properties are renting for. Property managers have access to all this data.
Once you’ve assigned an appropriate rental value, you’ll have to turn your attention to marketing and showing the property. You’ll need time to hire vendors and get your property ready for the rental market. Then, you’ll have to take some high-quality photos and list the property on all the popular rental sites. It’s critical that you respond right away to inquiries and to schedule showings.
You’ll need to manage the application process, screen your tenants thoroughly, and take care of executing the lease agreement. You’ll need to collect security deposit and move-in funds, and you’ll need to do all of this in compliance with federal and state fair housing and landlord/tenant laws.
Professional property managers have systems in place that can help you find and place a tenant quickly, to avoid long vacancies. You’ll be less likely to have to chase down late rent, address lease violations, and worry about eviction. If you’re going to manage the leasing process on your own, make sure you have the time to devote and the resources you’ll need.
How Will You Respond to Routine and Emergency Maintenance?
One of the benefits to working with a professional property manager in Colorado Springs is that you won’t have to worry about maintaining your home. A good management company will have a preventative maintenance plan in place and will respond swiftly to emergency issues at the property. If you self-manage, you’ll need to be on-call 24 hours a day and seven days a week in case there’s a leak in the middle of the night or a roof collapse over a holiday weekend.
You’ll also need vendors. Property managers either have in-house vendors who can respond to maintenance or they contract with a preferred list of vendors who offer discount volume pricing and a high standard of workmanship. If you’re a self-managing landlord, you’re at a bit of a disadvantage in finding good, affordable vendors because you don’t offer them the same volume of work as property managers.
Colorado Springs Property Management Systems and Processes
Property managers have been there and done that. Their years of experience and problem solving have led to the creation of effective and efficient systems that take care of everything from rent collection to lease enforcement to inspections and maintenance.
You’ll have access to state of the art accounting when you work with a management company. That will help you track and document all of the income and expenses associated with your rental property. Everything will be documented, including tenant correspondence, inspection reports, and rental property conditions.
There’s a management fee involved in professional property management, but it’s worth your peace of mind and your long-term ROI. Expensive lawsuits, an extra month of vacancy, and a drawn-out eviction process are all risks that come with self-management. If you decide you want to earn more and spend less on your investment, contact us at Muldoon Associates. We provide Pueblo property management in Colorado Springs and surrounding areas in Pueblo County and El Paso County.