Did you know that just under half of all landlords in the USA manage their own properties (according to Truelist)? If such a sizeable part of the landlord population does this, there must be something to it. As it turns out, managing your rental property alone can have significant benefits!
Self-management or the for rent by owner property management model simply means that the property's owner handles all the landlord responsibilities alone. They do everything from background checks and applications to exit interviews and property accounting. In this short article, you will learn why this is a preferable arrangement for some owners.
1. Save Money on Property Managers
Running a DIY property rental means you don't have to pay a property manager for their services. However, you must be the right type of landlord for this benefit to work in your favor. Landlords in this category usually share these traits:
- They have enough time for their properties (either because of excess time or owning fewer properties)
- They understand the technical legal and accounting processes associated with rentals
- They are proactive when it comes to maintenance
- They enjoy working with people
Landlords with these traits tend to enjoy running for rent by owner properties more than doing it any other way.
2. Easier Tax Reporting
Owner-managed rentals do not have a web of tax reporting relationships as complex as when property managers are involved. To report rental income, the owner only needs to have their tenants complete a 1099-MISC form. This 1099 form allows landlords to report rental income and deduct permissible expenses from their taxes.
With a property manager, there are extra forms and extra steps that need to be considered. What constitutes "permissible expenses" can also be more complicated in these cases.
3. Have Direct and Fast Access to Everything
When you manage your own property, you get to make 100% of the decisions you believe are the best for the property. Your business's well-being will always feel more personal than it would as part of a property manager's workload. Being more heavily invested in that way may set you up to make better strategic decisions.
This also means you have faster access to maintenance and accounting records when needed. There will never be a delay in retrieving these documents in an urgent pinch.
4. Personalize Your Service
The final benefit of renting without agents is that you get to give your tenants a personalized experience. The ability to personalize a tenant's experience is vital for landlords who want to build up their brand more than just rent their property out. It's also very useful for landlords who wish to increase their tenants' rates of lease renewals.
Does For Rent By Owner Work For You?
The benefits of managing your own rental units extend far beyond saving on management fees. You get direct access and control, which allows you to offer a personalized service that's 100% unique in the market. The accounting and tax reporting processes are also less complex.
Do you think the for rent by owner model is for you? If yes, then Gates Management and Realty can give you all the tools and self-rental tips you need for a thriving business. Contact us today for the most professional and experienced assistance in Hillsborough, NC.