THE PIT FALLS OF SELF-MANAGING YOUR PROPERTIES

THE PIT FALLS OF SELF-MANAGING YOUR INVESTMENT PROPERTIES

"How hard is it to manage my own properties?" 

At some point in an investor must answer this question.   The answer is complicated and depends on the needs of your properties and your own personal and business needs.  Here are few pitfalls to avoid when considering managing your own properties. 

1. If I place a “For Rent Sign” they will come.

Finding Tenants is the first step to renting your property, but not just any tenant-the right tenant. This process seems like a no-brainer; you put a sign in the yard that states “For Rent” and prospective tenant, will be begging for an application. Depending on the location, there is a little more work to do than just putting a sign up. You will need to invest money and time into marketing your property.  Some marketing may not cost anything, like social media platforms, but you will need to spend the time managing these sites. 

In fact, you may think you will have multiple people begging for an application. But the reality is, there may be a lot of people seeking to rent and a lot of people vying for an application, but are they the right people?  You’re effectively rolling the dice and gambling on your own investment. The wrong tenant can end up costing you hundreds and sometimes thousands of dollars in lost rent, property damage, and legal fees.

Property Management companies like CPI have the capacity to reach thousands of prospective tenants with a wide range of marketing tools like radio, social media, online presence, open house, fliers, etc. This type of competition can leave the self-managing investor at a disadvantage.  CPI has a proven system to screen tenants and make sure they are a qualified tenant meeting your expectations.  This protects you and the tenant. 

2. I don’t understand what my CPA is asking for?

Collecting rent is not just about receiving money monthly.  There are rules and regulations pertaining to the handling of security deposits, what needs to be reported to the IRS, and how money is distributed. Accounting is essential to successfully managing your property.  Creating budgets, paying taxes and insurance, and making sure there is money for that rainy day project-such as new roof are all areas an expert property management company can assist you with.

CPI uses the AppFolio platform which integrates both the owner and the tenant. The tenant can pay their rent, make maintenance request, and communicate with their property manager 24/7. The owner can review their statements, look at inspection reports, view recent pictures of the property and much more. Our experienced staff and designated broker understand how real estate and accounting work. 

3. Is self-managing your investing holding your portfolio back?

Not taking into consideration the amount of time and money you will spend on managing each property. Wouldn’t it make more sense to utilize these resources toward building your portfolio?

Let CPI take on the work of managing your properties, so you can build your portfolio.

4. “It takes 20 years to build a reputation and 5 minutes to ruin it” -Warren Buffet

Managing your reputation in the communities you invest in is just as important as managing your investment.  Tenants are 10x more likely to post a bad review about your property if they feel they had a bad experience. Poor customer service, maintenance issues, and tenant dissatisfaction can give you a bad name as a landlord, which can cause qualified tenants to look elsewhere. Remember when you self-manage, you must be on call 24/7-365 days a year.

CPI strives to make sure the tenant’s needs are met. We have a team ready to answer their questions and create solutions to any problem that arises.  We have regular business hours as well as after hours for emergency calls.

5. My blood, sweat, savings, and tears went into that property



Whether you spent countless hours researching and buying a property, designed and built the property, inherited, or personally lived and remodeled the property, there is a personal attachment involved. It is difficult to have a level of separation allowing you to make emotionless decisions that will ultimately affect your investment.

CPI is a buffer between your personal attachment and the property.  We can take a neutral stance and give you sound advice based on the market, history and overall health of the property.  This will help you as an investor to have a hands-off approach and removes the risk of subjectivity, which will allow you to handle your investments.

6. It’s so much work to do annual inspections!

Annual inspections take time and can be tedious. If you live out of the area or state, these inspections can also be costly in travel expenses. Failure to complete annual inspections can result in costly repairs and damages to your property. Tenants do not always report damage or a need for repairs. Annual inspections give you the opportunity to address the needs of the property.  The inspections also provide a paper trail in case you ever need to prove damage occurred by the tenant. Annual inspections protect the owner and the tenant.

CPI’s team of property managers are expertly skilled in identifying problems and damages during annual inspections.  Our Maintenance department of skilled carpenters, painters, and technicians can make the repairs to your property often while saving you money.

7. I don’t know Landlord/Tenant laws

Being a self-managing Landlord can get you into some sticky legal situations if you do not understand the laws are stay abreast of the constant changes in the law. Eviction laws are strict and knowing the relevant laws pertaining to the handling of an eviction will be vital once you are in front of a judge. 

CPI has a team in place to review legislative changes that affect the many Landlord/Tenant laws. We believe in being proactive so that you do not have to be reactive. We will prepare all documents and attend court on your behalf. 

We hope you have a good understanding of the “pit falls of self-managing your investment property.”   If you are thinking about hiring a property management company; consider CPI to manage your property so you can truly enjoy your investment.   Call us today for a free consultation; 360-636-2897