Manage Rent Myself or realtor to do the job?

Question

What is the advantage and disadvantage to rent out property on my own? Is it better to let the realtor do the job?

Answer 1

I, personally, would never, ever give that job to a realtor.  They don't give a d**n about your property and are only worried about getting paid.   They want a large chunk of your rental income(usually 10%) for managing your property and do a second rate job.  They will not look after your interests with the same judgment and care that you would personally do.  

The only possible exception to this is if your property is located a long way from where you live and it isn't possible or is very inconvenient  for you to be there.  That in itself is another no-no.  Long range real estate ownership is a bad idea.

Answer 2

It depends on how far away is your property. Using an agent doesn't prevent you from to get bad tenant. So,you need to use a very good contract and find out what is the law regarding about late payment etc... all these conditions. I had heard so many ppl sabatogy the property after they receive the eviction notice.

Paying an agent, it can save you time and money to find the tenant, because you don't have to show the place as often.  And they will have some sort selection process, like pulling credit report.  But some of them require one month of rent as commission.

Answer 3

I worked for a property management company, so I'm a little biased toward that road.  However, that's tempered by knowing how much nonsense we had to go through to make sure the units were kept up and dealing with tenant problems.  

Personally, I wouldn't be a landlord for my own property.  There's just too much responsibility to live up to, and it varies from state to state.  For example, in Hawaii where I live, the landlord is required to live in state.  If you decide to move out of state, you have to have an in-state representative - a property manager.  Not to mention the legal requirements for Fair Housing and keeping up with your area's Landlord-Tenant code.

There are some property managers who are only after the dollars, so interview and ask for references.  Check with your local NARPM (or something like that - National Association of Real Property Managers) and your State's Department of Consumer Affairs.

Answer 4

I do it myself and often regret it.    You are on call 24/7 and you need to be able to drop everything to deal with problems with this one and that one.

Then there is rent collection.     You will hear sob stories and have to harder yourself to it.   Most of it is BS anyway.

I hate the excuses for late rent and the sometimes outlandish "maintainance" demands.....some people think I have to change their freakin light bulbs, etc.    I seriously hate evicting anyone, not only because of the hassle, but I know that having that on their credit report will mess up future rentals and employment opportunities.    But, I can't afford to support their families, so I have no choice.

The parts I like are having control and knowledge of what is going on with my properties.    And I like some of the renters, especially the ones that are grateful for a nice place to live and let me know it.    Everyone likes a "thank you" every now and then.

Answer 5

What I have always done for a rental condo I own is to contract with a property management company to find the tenants, let them manage the place for the minimum term (usually 90 days) and, if the tenant turns out to be reliable, take over the management by myself. They usually charge you a set fee up front to do the tenant search and they then charge 7-8% of the rent as the fee. For me, it's worth the peace of mind that I don't get conned by some deadbeat, since I've never gone through the process of screening rental applicants.