Disadvantages of Managing Your Properties by Yourself

Investing in rental properties can be rewarding but stressful, especially with the number of tasks involved that need to be looked after daily. Most financial experts will advise the landlords to hire a property management firm who will send a condo manager to look after the daily tasks and responsibilities that you cannot fulfill all by yourself.

Here are some of the points to consider when deciding to manage your properties by yourself or if you would rather hire a managing agent:

Placing Advertisements
Do you know how to advertise your rental properties in Singapore? Do you even know how to come up with a concept that will attract tenants? Becoming an effective landlord does not just mean that you set up a rental property to make income and expect that people will readily come to you.

First, you must build systems that will make your business look well-thought out and organized, then you have to come up with policies that will make your rental properties attractive to prospective tenants. Does that seem like a lot of work to you?

Estate maintenance is a lot of work, that is why you don’t have to carry all the burden by yourself especially if you have several properties for rent. A managing agent can help you come up with strategies to advertise your property and attract more tenants so that you will never have a vacancy.

Screening Applicants
Screening prospective tenants is not as simple as setting up an interview. You would not want to end up renting one of your units to a problematic tenant who has a history of late rental payments or even a tenant with civil liabilities. But not all landlords have all the time in the world to screen every applicant, answer every phone call, schedule visits to the property, and set interviews. How can you screen applicants effectively without setting aside other important matters in your schedule? Moreover, how can you keep up with all the paperwork necessary that can be done by www.estateinfo.sg in Singapore so you can rent the unit to an applicant who has passed the screening?

All these can be managed easily when you hire a property management company for help. You don’t have to be present during interviews and property tours, plus they can handle all the necessary paperwork for you. The condo manager can answer phone calls and other inquiries on your behalf without asking for your approval or permission, because they can come up with a system for you.

Hiring New Staff
Not only do you have to deal with paperwork for taxes, permits, and licenses, but you also have to look for a reliable staff to help keep your rental properties in good condition. You might ask, why hire a managing agent when you can have your own in-house staff?

The problem with looking for qualified condo managers is that not all landlords are able to discern which applicants are qualified for the job or not, because property management is different from sales and accounting, maintenance and repairs, advertising, and legal work. Estate maintenance involves all these areas, that is why you need someone who is an expert in all the mentioned fields. You can hire staff to divide the tasks effectively, but someone needs to supervise all the activities.

Renovations, Repairs, and Maintenance
If you own several rental properties, would you be able to set time to inspect all the units to determine which ones need renovations and maintenance? Will you also be able to keep up with the complaints from tenants about utilities that don’t work? Finally, can you look for reliable contractors who can perform the repairs, renovations, and additions in your rental properties?

A managing agent can take over these tasks for you. Estate maintenance after all involves keeping all your properties in good condition so that your tenants can be happy with the service you’re providing. Preventive maintenance will keep your properties in good condition because small problems are resolved right away. You will be able to save more money for major repairs and renovations that way by delegating the task to someone who specializes in estate maintenance.

The way you will run your business will affect your image among your tenants, and in turn, their opinion will influence your reputation among prospective tenants and other businesses near your rental properties. Quality products attract quality tenants after all.

Collecting Payments and Imposing Penalties
Setting up a policy for payments and penalties will make the collection easier, but even if we all want such transactions to go smoothly, that is not always the case. Some tenants can be elusive when it’s the deadline, while some might experience financial difficulties so that the payment is delayed. Why deal with all that yourself when you can ask your condo manager to collect the payments?

By delegating the task to the managing agent, you will be safe from the stresses and headaches of collecting rent. Keeping a distance will also enable you to keep your image as a landlord who will not meddle with the affairs, sometimes the embarrassing financial state, of his tenants. Lastly, you don’t have to kick out problematic tenants yourself, because the condo manager can act on your behalf.

Resolving Issues
Having problematic tenants can be a hassle, especially if they are the cause of disputes with other tenants. With a managing agent, you don’t have to resolve such issues by yourself because someone already has the authority to interfere. He/she can call for legal enforcement to resolve issues with problematic tenants or call for help during medical emergencies.

Complaints also don’t have to reach you directly because they can be resolved by your condo manager. Only the most important issues that need your decision-making or approval will be addressed to you.

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