There are many individuals who successfully manage their own properties -- generally, these folks have one or two that they take care. They are skilled enough to manage repairs, run ads for tenants and then enter into lease agreements.
Not counting a few problems here and there - these individuals are content and feel good about saving the between 6 and 10% property management companies charge. And then, something goes wrong. Really wrong. And by the time the call me - they are desperate for advice and want to turn their property over for someone to handle.
What are the top reasons do-it-yourself property managers have when they have finally had enough?
#1 on the list - "They did not know ..... (fill in the blank)". Not knowing is not a reason that works in court. And many property owners find that out the hard way. Arizona is a very tenant friendly state - rental laws are heavily regulated, as are fair housing and tenant/landlord rules. You have to "know" what your responsibilities are - ignored or unknown responsibilities are lawsuits waiting to happen that never win in court.
#2 on the list- an outdated or office supply store lease did not protect them. These are very generic leases - and do not cover all the typical issues that can - and generally do come up. In addition, these leases do not have all the rental addendum's needed for not only landlord protection, but tenant.
#3 on the list - they found out what the high fines are and once they wrote check to pay out for their errors - almost all do-it-yourself property managers - call a professional. One owner realized that hiring me for 5 years would have been cheaper than the fine he ended up paying.
But don't wait until it gets to that point - get experience on your side. KGC Properties LLC has been managing property for over 24 years - we are Tucson local, we have happy tenants, we have happy owners, we have low fees! Visit our website for more information!
This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .