With rising rent and home prices, more people than ever are looking for alternative housing options. Many people are turning to new rental properties, opening the door for real estate owners with property.
The question is, do you manage things yourself or use turnkey property management? Let's examine why each option is attractive and some questions you should ask yourself to decide which option is best.
In-House Management
In-house real estate asset management is an excellent option for investors who want more control over their properties. They want to create procedures, hire a team, and be hands-on.
This carries many benefits for property owners:
- More control over operations
- Understand the ins and outs of the properties
- Find all problems first-hand
In addition to these benefits, you can optimize your costs by working with your chosen vendors and employees. With a rental property management company, you don't get much choice in this. This can sometimes lead to added costs that you may not need.
Of course, you'll also need to put in much more work in this situation. You'll need to develop a process for tenant screening, maintenance, and other tasks to ensure your properties stay in shape and you keep generating income.
Third-Party Management
Third-party property management is a great option for investors who want to spend less time managing their properties. They have other obligations in life, so too much time spent away could negatively impact those things.
Working with experienced property managers has several benefits:
- Save time dealing with property issues
- Get established management procedures from experts
- Gain access to a network of reliable vendors
The great thing about property managers is that you can use them for a single service or full-service property management. For example, if you have trouble getting tenants, you may hire a leasing-only service. But if you want to completely remove yourself from the management process and collect rent checks, a full-service option is great.
Of course, you must also consider how much control you want to give up when hiring a property manager. If you prefer to be hands-off and don't care much about the process, full-service management may be a great choice for you.
Choosing In-House or Turnkey Property Management
Deciding to outsource property management is a big decision. Ask yourself these questions to help you make a decision:
- Do I have the time to give my properties attention?
- Do I have a reliable team to help manage everything?
- Am I spending more in-house than I would with a property management company?
Consider what else is important to you when making this decision. It may be a personal decision, so decide what matters and if it's worth it to trust a third party with the job.
Invest in Turnkey Property Management
As you can see, there is much to consider when thinking about turnkey property management vs in-house property management. Yes, you can gain a lot of benefits by bringing in everything in-house. However, don't underestimate the time-savings and expertise you receive when you work with turnkey property management solutions.
If you're ready to outsource your portfolio management to experienced professionals, PMI San Tan is here to help. We offer professional services for any property management need you have. Contact us to learn more.
