Whether you've lived in your home for a few months or a few decades, you probably think you know it best. But that doesn't mean you're the most qualified person for the job when the time comes to rent it.
Many folks are tempted to take the For Rent By Owner (FRBO) route believing they'll save a bundle by not paying a property manager. They may imagine it's a simple as sticking a sign in the ground and watching qualified applicants magically appear. While that may happen occasionally, the vast majority of that time it doesn't work like that. At all.
Below are some questions most FRBOs think they can answer with a resounding “YES!”... which is rarely the case. More often than not, they end up hiring a property manager instead.
1. Do you know how to price it accurately?
Coming up with the right asking price requires doing your due diligence. Researching what comparable rental homes in the area recently sold for is key. You may also want to hire a property manager to be sure you’re not over-pricing or under-pricing your property, as both will end up costing you. Also, beware: Those who’ve gone the FRBO route note that very often renters are hoping for a deep discount (and a no credit check) knowing they are dealing directly with the landlord. So even if you’ve listed it for a fair price, be prepared to negotiate.
2. Are you a marketing maven?
If only renting your home were as simple as sticking a few FOR RENT signs around town and watching the applications roll in! But there’s a lot more to it than that. Most applicants will first find your property online. That means you’ll want to be sure to develop a stellar Internet strategy. Your home should be easily viewable on your local Multiple Listing Service site. (Expect to pay a fee for this!) You’ll want flawless photos too, of course, so put that iPhone away! You may also consider creating a website that shows off your place in all its splendor. Are you ready to make up flyers, post it other online forums, put signs in prominent locations? All of this takes time and effort but is the only real way to guarantee foot traffic.
3. Do you have the time to show it?
Sadly, not all prospective renters will want to see your home between noon and 2 p.m. on a Sunday. You’ll need to be available during the day and evening. Even if you work locally, dropping everything for an impromptu showing gets old pretty fast. And what happens if you’re not accommodating? Chances are your potential renters are going to move on.
4. Are you up on the latest trends?
Think your home is perfect just as it is? It may be, but unless you’re in the know when it comes to exactly what renters are looking for, you can end up losing a potential renter thanks to outdated bathrooms and and paint colors or even a loose door knob. Never underestimate the value a licensed and professional property manager brings in terms of helpful renting information and cleaning hints.
5. Are you certain the renters are qualified?
Nothing is worse than thinking you’re this close to striking a new tenant only to find out your would-be tenant won’t be able to come up with the funds to move immediately. Can you confidently separate the real prospects from the lookie-loos? Professional property managers vet and screen potential renters, saving you time, money, and serious aggravation. If you’re going it alone, be sure to know how to screen an applicant.
6. Can you remove the emotion?
Even though you’re ready to rent it, you may still feel some attachment to your home. Noone can take as good of care to your property better than you can. Once you lease the property, everything about that property no longer affects you, it affects someone else. At that point, reason can take a backseat to emotion and you’ll blow an emotional gasket by not putting the big picture ahead of your feelings.
7. Are you ready to field calls night and day?
Once you’ve got an applicant on the hook, get ready for all sorts of calls and requests to show the place to every relative they’ve ever met. They also may have a sudden urge to stop by at 10 p.m. to measure for a new couch. You may be too afraid to tell them “no” for fear of losing them. This is where an agent will often step in and keep those demands to a minimum.
8. Will you understand all the documents?
OK, here’s where things get really complicated. How well-versed are you in Landlord Tenant Law and lease legalese? Is your lease legal? When you rent a home yourself, everything you’re stating needs to be accurate or the renter may be able to come back to you for reparations later. For example, did you advertise that your floors are hardwood when they’re actually veneers? A professional property manager is aware that the devil is often in the details. Are you?
After all is said and done, you may lose money.
Even if you really put your heart and soul into renting your place yourself, you still may not come out ahead. Now, of course, studies have pointed out that private landlords are more likely to try to rent their homes themselves in markets with lower price points, making that disparity seem greater than it might be. But, when you consider the time and effort that goes into renting your home on your own, it may make (dollars and) sense to hire a local property management professional.
This is only 8 Reasons, and you still have to consider everything that is involved once the tenant moves in.....
