What are the alternatives to hiring property managers?
Congratulations! You have a property to rent, but when you crunch the numbers, the cost of a property manager seems to carry a hefty price tag. What other options do you have? We reached out to our readers for their suggestions for property manager replacements. Keep reading to see what they had to say.
Leverage Technology in Your Properties
One of the best alternatives to a property manager is leveraging technology to be able to manage the property with only a small amount of time. Having streamlined processes to manage your property will make it possible for you to manage the property yourself in a fraction of the time required.
For example, installing a smart door lock with a keypad on the home will save you time and hassle having to drive out to the property for emergencies such as tenant lockouts, contractor access, Airbnb guest access, prospective buyer showings, etc.
For rent collection, you can utilize property management software to automate rent collection electronically and speed up the accounting process as well. A good property management software will also offer additional services like tenant screening, so you have almost all of the tools you need in one place.
Try a Lease with Option to Buy
If you are not interested in hiring a property manager, you might consider a “lease with the option to buy” rental agreement with tenants who wish to own their own home but don’t qualify at this time.
In the paperwork for a “lease with option to buy,” the responsibilities of the owner and tenant/buyer are clearly stated. The tenant/buyer is a “homeowner in training” and is responsible for all maintenance and repairs, with the exceptions being major items such as the roof and HVAC. The property owner only gets involved when major items need attention, while the tenant/buyer is responsible for everything else regarding the house.
This setup eliminates the need for property management and eliminates calls from the tenant/buyer about things such as a clogged toilet or leaky faucet. The tenant/buyer handles the issue or hires someone who can.
Use Software, a Caretaker, or Do It Yourself
Property management is a big business, but a lot of people do not want a property manager or management company.
There are a variety of apps and property management software you can use to self-manage your properties. You can look at MultiSite Property Management, Axxerion, Buildium, and Doorstop.
If you want to self-manage your properties, the best and most important thing to do is be visible. Tenants need to know that you are paying attention, or they will just take advantage of you with late rent or damages. Have a reporting system in place where tenants can report any issues they are having, and then get a maintenance company on your books to fix any issues and take care of any building maintenance.
Having one trustworthy tenant who can be a caretaker will make things a lot easier for you.
You may not want a property manager, but most big property owners will tell you that in the end, it is worth it to have one.
Property Management Software
Getting property management software can be a great alternative to hiring a property manager, especially if you’re a hands-on landlord or out-of-state investor. These digital portals and apps give property owners the ability to manage the leasing, scheduled maintenance, and collect rent all in one place.
Hire a General Contractor
A great alternative to hiring a property manager is hiring a general contractor. These individuals are typically experienced with all kinds of property and construction-related materials. They know what it’s like to deal with the general public, clients, and large projects. They would make a great alternative to a property manager.
Hire Independent Contractors or Real Estate Agents
Hiring a property manager is often the best strategy to create a passive stream of income for investors, especially if they live remotely or have full-time careers. However, it is an added expense and may not be worth it for investors who own just few units, are handy, and are available to deal with tenants' inquiries and issues.
You can also choose to hire independent contractors to deal with specific tasks. For example, a landscaping company and a trusted handyman can take care of yard maintenance and occasional repairs. You can also hire a real estate agent when you need to find new tenants to take care of showings and inquiries.
Three Alternatives to Hiring Property Managers
In the modern world, it is not uncommon for people to rent out their homes or apartments to make a little extra money. If you don't have time to manage your property yourself, hiring a property manager might be worth looking into. However, hiring a property management company has its own set of downfalls. Below are some alternatives that you could use if you want more control over your property.
1. Do it yourself
One of the most common alternatives to hiring a property manager is doing it all yourself. As hard as this may seem, there are many ways that you can manage your property without having any sort of extensive experience with renting out homes or apartments. There are a lot of resources on the internet that provide information and advice for property management.
2. Hire an assistant
Another common way to avoid having to hire an actual property manager is by hiring a part-time assistant. This may be someone that works for you at your main job, or it could be a friend that has experience with property management. These assistants are not only great because you can put them to work at your main job while they are working on the property, but they can also make sure that everything is in order. In some cases, you may find that they can even manage the property without your guidance.
3. Reduce your rental prices
An effective way to manage a property with limited time is to reduce your prices. You will earn less money from the rental, but your properties will be more appealing to those who are looking for a place to live. If you want to experience less work, but still have properties that rent out quickly, this is a good way to save some time and effort.
Hire Real Estate Agents or Brokers
Alternatives to property managers could include real estate agents or brokers. These individuals are used to being around properties and typically know how to handle people. Through their on-the-job experience, property management is most likely something they would be able to pick up fast, and I think they would make a great alternative.
This is a crowdsourced article. Contributors are not necessarily affiliated with this website and their statements do not necessarily reflect the opinion of this website, other people, businesses, or other contributors.