For those of you who own rental property - do you manage them yourself or use a property management service? (Austin: renters, credit)

[Moonlady]

OK, we are reluctant landlords. In this situation because we didn't want to sell our home and may move back some day. But I tell ya, I'm not good at being a landlord. My parents owned multiple rental properties and I have rented my own place and I don't like dealing with it. Is a property manager the best thing for us? The amount we are going to be able to get for rent more than covers the extra cost. Just wanted to hear some opinions or from those of you who may have used them.

[BJB817]

Even though I don't have experience here, I'll give it my $.02 anyway...

By the way you worded your post, I'm guessing you moved out of state? If so, I'd recommend getting a management co. It's going to be much harder to deal with issues that come up from afar. With a mgmt co, at least your're spared the stress of of having to respond to maintenance requests, complaints etc.

That said, do make sure they proactively keep an eye on the place to make sure it's not being trashed by the tenants. I can't tell you how many rentals I see owned by slumlords that just don't care. Since you're considering moving back someday, I'm guessing you care a bit more than some.

Sorry I don't have more to offer than that...

[Trainwreck20]

Having rented out a house a couple of times (but never long term), I would definitely get a mgmt company unless you lived very, very close to the rental property (like 15 minutes or less).

[Moonlady]

Originally Posted by Trainwreck20

Having rented out a house a couple of times (but never long term), I would definitely get a mgmt company unless you lived very, very close to the rental property (like 15 minutes or less).

Thanks, that's the kind of input I was looking for. We moved across the river, 30-45 minutes away depending on traffic, so it sounds like a management company is probably the best way to go.

[DittoDitto]

I was also a reluctant landlord but I struck a balance. I didn't like that property managers charge 10% over repair/maintenance costs. I have people that I trust who can do the repair and maintenance. I didn't like finding my own tenant but I didn't like having the property manager do the screening because I wasn't allowed to see the reports. I didn't like collecting the rent because I didn't want the tenant to know where I live and I don't like to dun people.

Therefore, I made arrangements with the property management company who finds my tenants. This is what we agreed upon: I would screen the tenant. I have a company that does background, criminal, prior landlord, work history, credit, and terrorist activity reports. This way I am better able to make my own decisions and I can keep a copy of the report.

The property management company collects my rent. I pay them a fee for collecting the rent, forwarding the rent to me, doing a final walk through, and returning all security deposits. I take all calls from the tenant and deal with all repair/maintenance issues.

I wind up paying less money, and I get the services that I want without having to pay for services that I don't need or want.

In order to insure that I get a good tenant, I have very strict requirements that are added to the listing. This means that I get a lot of applications that I turn down, but I also haven't had any problems with my tenants.

[Trainwreck20]

I take all calls from the tenant and deal with all repair/maintenance issues.

This is the issue that kept me from being my own manager. I would have done everything else AND done this if I lived close enough to do it conveniently, but having to run across town on a regular basis (and on short notice) would be a pain. Also, I do travel for work, and the first time the AC unit went out while I was out of state (or country) and I would have to get it handled...ugh!

[atxcio]

I've managed my properties myself, except for a single time when I used a property management agent. I live reasonably close to my rentals, within 15 or so miles. I was not a reluctant landlord, though, I did choose to buy with the intention of renting out.

After 16 years of doing it myself, the MOST IMPORTANT advice I can give is to choose and screen your tenants VERY carefully. Your whole experience will largely be a result of whether you picked the right tenants. This is something I don't trust a property manager to do; they are motivated to get their commission, and ultimately it isn't their property, so I don't think they will be quite as picky as me. Not to say they won't do a good job, though. And if you aren't comfortable taking on the responsibilities of a landlord, then by all means use a property manager.

The other pieces of advice I can give... this really applies even if you have a property manager, depending on what level of service you have with them

1)Forge a relationship with maintenance companies/contractors. Don't just shop for a service and get it done, talk to the company and let them know you want a relationship for future business. After all, you are a "commercial" customer now. This is key for those times when you are out of town and you have an emergency at the rental -- someone you trust that you can call, payment procedures already established. Or even give their number directly to the tenants so they can get service in an emergency, with the service company knowing to call you for final approval. Personally, I provide a list to my tenants of the contractors they should call directly in case of problems (plumbing, a/c, pest control, etc)... in addition to lists with #s and info for all the utility hookups, garbage/recycling days, even restaurant and shopping info.

2) I also suggest getting service contracts for your A/C, pest control, landscaping (if you provide), etc. That way you have a well-known, documented maintenance schedule so the tenants know certain things will be taken care of and are less likely to call you about them.

Naturally, in all the years I've been doing this I've had just about everything happen. It's never fun when an emergency happens in the middle of the night, when you are out of town, or when you have issues with a bad tenant that doesn't pay or breaks the lease... but over the years, the problems have been minimal, and it's been actually fun and rewarding managing my own property. YMMV.

[Trainwreck20]

1)Forge a relationship with maintenance companies/contractors. Don't just shop for a service and get it done, talk to the company and let them know you want a relationship for future business. After all, you are a "commercial" customer now. This is key for those times when you are out of town and you have an emergency at the rental -- someone you trust that you can call, payment procedures already established. Or even give their number directly to the tenants so they can get service in an emergency, with the service company knowing to call you for final approval. Personally, I provide a list to my tenants of the contractors they should call directly in case of problems (plumbing, a/c, pest control, etc)... in addition to lists with #s and info for all the utility hookups, garbage/recycling days, even restaurant and shopping info.

I rented a property for five years with several revolving roommates when I was younger, and after the first year or so, the owner (who lived in CA) let me do almost all the property management - I got bids, had work done, documented it, and deducted the cost from my rent. For big things (like when AC went out or new siding was desperately needed), I talked to him first, but for the mundane, I just got it done as needed.

In hindsight, I saved this CA dude a ton of money by not needing a property manager....

[bridgebats]

We manage ours, but it's only a 5-10 minute drive to get over there if a problem comes up. I researched using a company and I remember being surprised at the fees for finding a tenant. We were thinking about signing a tenant and then hiring management for monthly maintenance, but have liked having the additional income.

With the high occupancy rates, it was insanely easy to find tenants and I'm glad that we ended up going diy with that. With the recent tenants, I didn't even advertise- I just looked at the "housing wanted" posted and screened for people that seemed like a good fit for our place. The very first people that I contacted ended up signing a year's lease. I suggest looking into the landlord's packet from Austin Tenant's Council if you decide to do it yourself.

[Moonlady]

Originally Posted by Trainwreck20

I rented a property for five years with several revolving roommates when I was younger, and after the first year or so, the owner (who lived in CA) let me do almost all the property management - I got bids, had work done, documented it, and deducted the cost from my rent. For big things (like when AC went out or new siding was desperately needed), I talked to him first, but for the mundane, I just got it done as needed.

In hindsight, I saved this CA dude a ton of money by not needing a property manager....

I would love to have a tenant like that! Unfortunately, my experience with renters has been that they don't want to do anything themselves no matter how simple.

I have a very good friend who is a realtor and I enlisted her help to list the property and screen the applicants. It's the ongoing maintenance I worry about.

atxcio - lots of good insight there. Having bought a house that needed some fixing up, we have a good relationship with several contractors, so I feel better about having people I can rely on and who already have my business and treat me as a valued customer.

I'm really torn - I know I could save quite a bit doing it ourselves, but it's those middle of the night calls that scare me! That and collecting the rent. I think what I'll do is wait until we know what kind of tenants we have - high maintenance or more reasonable types that will work with us.