Renters make up about 36% of the population today. These rental properties serve both as homes and investment opportunities. If you're trying to build your streams of income, putting up homes for rent is one of the best ways to do it.
Perhaps you're considering whether to become a DIY landlord or hire a property manager. The Columbus, GA and Phenix City, AL areas are filled with opportunities.
Below we'll share the pros and cons of DIY homes for rent vs. hiring a landlord.
The Pros of DIY Homes for Rent
Plenty of people today are becoming their own property managers. With a bit of savvy and some bookkeeping software, you can do the same.
Here are some reasons people choose DIY:
1. You Control it All
When you hire a property management company, your rental often becomes out of sight and out of mind. As a DIY landlord, you control everything.
You'll always be updated whether a toilet is malfunctioning or a tenant is late on rent one day. This is definitely the right call if you always like to be informed and aware.
You'll be able to market the neighborhood and other features to attract the best renters. Hampton Roads is home to thriving neighborhoods like Bay Island, Chic's Beach, Rudee Heights, and Sandbridge.
2. All Profits Go to You
You don't share money with anyone when you handle your own rental leasing. Property management companies collect a portion of the rent every month as part of their compensation.
If you're up for the task of DIY management, more profits go to you.
3. There Are Tax Breaks
When you hire leasing management, you give up on certain tax incentives.
As a DIY landlord, you can take advantage of rental property tax deductions whenever April rolls around. You'll appreciate reducing your tax obligation while solidifying a passive income stream.
Check into the real estate tax rates in Norfolk and Newport News Counties.
The Cons of DIY Homes for Rent
So, why do people hire property management companies? There are several reasons why it's best to leave it to a professional.
Consider these reasons not to DIY:
1. You're Not a Pro
Property maintenance, accounting, real estate marketing, and real estate law. These are the types of things you need to be on top of when renting out a property.
Chances are that you're not an expert in every single one of these fields if any of them. A property management professional has experts in all of them, so you're getting high-level care in every area.
2. It Takes a Lot of Time and Stress
DIYing your properties is a lifestyle. There are no days off, as you are responsible for responding to an emergency no matter what's happening in your life at the moment.
People often run themselves into the ground with stress as the burden of running a property mounts up.
3. You Might Pay More in the Long Run
Even though people often DIY property management to save money, it usually costs more in the long run. You'll have to come out of your pocket to handle repairs and upgrades, and will need to finance the marketing and upkeep of any property.
A property management company has resources and will take care of all of these matters as part of their payment.
DIY Homes for Rent vs. Hiring a Property Manager
Let these tips guide you in case you're considering DIY homes for rent. If you'd like to get the help of a professional, Renters Warehouse Hampton Roads can help you with your property management needs in the Hampton Roads area.