Multifamily Property Management: Should You Do It Yourself?
If you have decided to expand your rental properties with a multifamily unit, you may be surprised at how different it is to manage. While you may already own a number of single-family homes that you rent out, things get a bit different when the same property is home to multiple families. To make sure the property makes a profit for you or at least breaks even, you may want to consider hiring a property management team instead of doing it all yourself. Here are just a few reasons why.
When you have a single-family home, you can stipulate in the lease what responsibilities the tenant has as far as caring for the property. This can include mowing the lawn, keeping the yard free from trash that may have blown into it, and even making sure the outside of the building is clean. The entire property can be the responsibility of the tenant, barring malfunctions of the integrity of the building such as rotting floors or roofing. However, when multiple families live in a unit, there will be areas that are common to all tenants. It would be very difficult to hold any one family responsible for common area upkeep. Hallways, yards, and any other areas all the tenants have access to will be your responsibility. Even something as simple as replacing light bulbs or cleaning the trash area can become time-consuming. A property management team can consist of a handyman who can take care of common areas and fix small problems within the different units. This person can also be responsible for cleaning and repairing each apartment in between tenants.
Having different families in one building can sometimes cause problems. One family may go to bed early, while the other lives more of a nightlife. This can cause problems, and you will need to be available to help solve the issues. It may require you to be on the property to know for sure what is going on and how to handle it. If the problem is noise, you should spend some time there to find out if the noise is excessive or if the tenant complaining is exaggerating things. You do not want to leave things to the tenants, as it could start a major argument or even become physical. When you have a property management team, you can either have different shifts working so that someone is always there or perhaps have the manager living on the property to handle things at all times.
Keeping the units full and the tenants happy is important to the profitability of any rental unit. When the property will have multiple families living in it, you should have someone available at all times to keep things running smoothly. If you are not going to live in one of the units yourself, you should hire property managers to take care of things daily. It will save you time and money in the long run. To learn more about multifamily property management, contact a company like ClearWorth Capital.