Did you know that approximately 70% of rental properties are owned by individuals who typically manage just one or two properties? This intriguing statistic underscores the prevalence of "For Rent by Owner" arrangements in today's real estate landscape.
If you're contemplating the idea of renting out a property, you might be grappling with the decision of whether to take on the responsibilities yourself or enlist the assistance of a professional property management company.
In this blog post, we'll highlight the pros and cons of managing a rental property independently. That way, you can make an informed decision. Let's get started.
Pros of Renting Out a Property Yourself
Renting out your property independently comes with several notable advantages that can be appealing to many property owners. Let's look at some of these benefits here.
One of the most significant advantages is the potential for cost savings. When you manage the property on your own, you can avoid paying management fees to a third-party company. This means more money in your pocket each month.
Renting out your property yourself gives you complete control over every aspect of the process. You can set the rental price, choose the tenants, and make decisions about maintenance and repairs without needing approval from a property management company.
Many tenants appreciate dealing directly with the property owner. It can create a more personal and trustworthy relationship, potentially leading to longer tenant stays and reduced turnover.
Cons of Renting Out a Property Yourself
While renting out a property on your own offers independence, it's not without its share of challenges. In this section, we'll examine the potential drawbacks and obstacles that property owners might face.
Time and Effort
Managing a rental property is a time-consuming endeavor. You'll need to handle tenant screening and inquiries, property maintenance, and financial record-keeping. If you already have a full-time job or a busy schedule, this can be challenging.
Lack of Expertise
Property management requires specific skills and knowledge of local rental laws and regulations. Without this expertise, you might make costly mistakes or end up in legal trouble.
Finding and screening tenants can be a daunting task, and longer vacancies mean less rental income. Property management companies often have the resources and marketing tools to minimize downtime between tenants.
Is "For Rent by Owner" Right for You?
Whether you should rent out a property yourself ultimately depends on your unique circumstances and preferences. If you have the time, and willingness to learn, and are looking to maximize profits, managing it on your own might be the way to go.
On the other hand, if you value your time, want to avoid the complexities of property management, and are willing to share the profits, hiring a professional property management company could be the better choice.
Stress-Free Property Management with Kerr Properties
The bottom line is that there are pros and cons to a "For rent by Owner" scenario. If you are a new landlord looking for professional property management services in Gresham, OR, and Portland, OR, Kerr Properties is your trusted partner.
Our full-service solutions are tailored to meet your unique needs. From tenant screening to maintenance, we've got you covered. Contact us today to learn more about renting out a home.