Roughly 70% of rental properties in the U.S. are owned by individual investors. But what's more interesting is that about half of these properties are self-managed.
If you have a property you'd like to convert into a rental, you're probably stuck between making it a 'for rent by owner' or outsourcing your functions to a property management company.
It's understandable if you're strongly leaning toward self-managing it. However, as a first-time landlord in Jacksonville, FL, it's advisable to let a property manager do the job.
Here's why:
1. Avoid Compliance Issues
When you become a rental property owner, you automatically inherit certain legal responsibilities. For example, when finding a tenant, you're free to pick someone who meets your criteria, but you cannot reject an application because of the renter's race, gender, nation of origin, or disability.
If you don't have adequate landlord experience, it's easy to make mistakes that will land you on the wrong side of the law. To prevent that, go with a property management company. They have the experience and legal know-how to avoid any compliance traps.
2. Earn Steady Rental Income
You're probably dreaming of collecting rent from your tenants every month. The money is sweet, but that's only when it comes in consistently.
As you'll soon learn if you don't get professional help, keeping your rental property occupied throughout the year is easier said than done. Tenants will come and go, and sometimes it will take several months to find a new one. Or you may have a tenant who doesn't pay rent consistently.
A property manager is your best chance at earning a steady income. Through property marketing, tenant screening, and efficient rent collection, your property will not only maintain a high occupancy rate, but also have high-quality tenants who pay rent on time.
3. Get Help With Taxes
Rental income is taxable, which means once you become a private landlord, your taxes will become even more complicated. The good news is a property manager can help you with investment taxes.
As a rental property investor, you're entitled to various deductions. You can count on your manager to use these deductions to reduce your tax liability.
4. Enjoy the Landlord Life
Every landlord's dream is to earn passive income from their properties without lifting a finger. But if you're a DIY landlord, you have to be present to manage the property.
That's not the life you desire. You want to set sail to an exotic island and relax as your rental income hits your account every month without fail. To have this kind of life, you need to hire a full-service property management company.
For Rent By Owner Isn't the Way to Go
The 'for rent by owner' path has its benefits, but if you don't have enough time and property management experience, you could run into big challenges.
Hiring a property manager is the way to go, and in Jacksonville, look no further than Nestfinders Property Management. We're a results-driven team that doesn't stop until a property owner is successful.
Contact us to get a taste of the Nest Finders experience.
