When and Why it Makes Sense to Have a Property Manager for your Rental
As a Charleston County rental property owner in South Carolina, you are aware of your option to contract with a professional Property Manager or essentially do it yourself. You gain two things when you do it yourself; complete authority over your tenant situation and you don’t lose any of the monthly rent. Is it worth it?
Some people simply do not have the right demeanor to manage tenants, especially when it involves a property they own.
The two biggest issues with managing your own rental property are first, a lack of seasoned discernment in order to screen in great tenants and screen out potential problem tenants. The second issue is not knowing how to interact with tenants in a way that improves retention and encourages correct treatment of the property.
Lets look at the first issue. If a property owner tries to ‘trust their gut’ and choose a suitable tenant from the ones who apply, there is no guarantee of a good outcome. Why? Because problematic tenants tend NOT to reveal their problems during the screening process. Make sure you read that again. Problematic tenants are often skilled at appearing very easygoing.
In fact, those who do tend to cause headaches for landlords know that the first step in finding a home is to demonstrate a ‘great’ demeanor which makes them appear attractive to the owner. What we’re talking about is people presenting what seem like irresistible conditions such as a desire to get a lease signed quickly, make first payments and not waste a lot of time.
If you take a step back and think about that, you’ll see there is an underlying problem. Really great tenants are very much on top of their lives and as such are generally looking for their new place well in advance. They certainly don’t want to rush themselves nor you. This is just one example of a trap that certain rental property owners fall into of wanting to seize what seems like a great opportunity and get someone new into their rental property so there’s no interruption to the flow of rent.
Property Managers, at least skilled ones should not fall for these illusions. We know that slow and steady wins the race. We have a process for screening and there are no short cuts. Taking short cuts is much like spinning the wheel. You might get lucky and realize months later you made a good choice. No harm, no foul.
But it is also possible you’ll end up with a major headache in trying to deal with an unreasonable tenant who now is part of your life for at least a year and maybe longer. For anyone who has had to go through this which may have included taking legal action to get them out of your house, you know how it ruins your life.
With regards to correct demeanor, this comes down to presenting yourself to your tenants during needed interactions in a way that builds trust, rapport and compliance. Many of us want to be nice and be liked. Other property owners feel very controlling about their properties and try to enforce unrealistic rules which tenants react against.
A skilled and experience property manager knows that regardless of ownership, people have a certain possessiveness about their home. No one likes to be told what they can and can’t do at home. The big difference between a renter and an owner is that the renter IS restricted to a degree because they don’t own. They know it but still, people want a certain feeling about where they lay their head down each night; safety, security and freedom.
So how do you help a tenant feel really good about a home that is your property but where they live? Well now we arrive at the art of property management! How do you establish the right authority which imposes certain restrictions at times and yet creates an environment where the tenant feels totally comfortable doing and living how they want? Its a bit like asking how to be good at anything that is hard. the answer? You try and fail and learn and refine. I hate to sound simplistic but that’s what we’ve done to get into this position of operating a successful Property Management business in Charleston, SC.
The Best Demeanor in the World won’t Matter when Trying to Reason with Entitled Unreasonable Tenants
The bottom line comes down to discernment and communication. Do you feel confident in your ability to select good candidates and allow them to become your tenants? If it’s taking longer than hoped for, and someone comes along who wants to rent from you, will you be able to withstand the temptation to usher them through the screening process regardless of their suitability? Money can cause problems in this regard. Yes, you want your rent and, every month without rental income hurts.
However, as I wrote earlier, short cuts cause risk and risk means things can turn bad.
Now regarding communication, are you able to communicate in ways that are well received by tenants? Can you create guidelines for those living in a home you own so they feel free to enjoy it as THEIR home? Do you tend to be a bit micromanaging? Huge turnoff to tenants.
Do you collect the rent and just hope all is well, out of sight out of mind? That won’t work long term. You need to learn how to communicate effectively with tenants so all parties are heard and guidelines are followed. It’s not really about being nice. It’s about setting a working relationship and being their landlord.
If your don’t feel you can do this stuff consistently, you’d be better off having someone else mange your property and give a portion of the rent for that piece of mind. In other words, you likely need a property manager!