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For several years, Denver property owners have been coasting with relative ease thanks to high competition for buyers. The city is now facing housing oversupply, meaning that renters have their pick of properties.
As you approach the summer season, a popular time for tenant turnover, it's time to think about your strategy to combat vacancies. Will you continue to use in-house methods or hire third-party turnkey property management?
Read on to learn more about the pros and cons of both options to find out which management strategy is better for you.
When to Choose In-House Management
In-house management entails managing your rental properties on your own. The biggest benefit of doing so is that you don't have to pay anyone else to do it for you. The rest comes down to preference, time, and skills.
If you enjoy knowing your renters and making decisions about your rental properties, you may prefer in-house management. However, it's only a good choice for your renters if you understand what renters want and have the time to deliver.
Remember, you have a legal obligation to provide safe housing for your tenants. That means addressing maintenance issues, even if they occur in the middle of the night.
When to Invest in Third-Party Management
You're an accidental landlord and have no idea how to manage rental units. You've used in-house management for years and you're ready to step back. You bought your rental because you were looking for passive income, not a full-time job.
If any of these scenarios sound familiar, outsourcing is the right choice. Third-party turnkey property management covers just about everything, including:
- Property valuation and market analysis
- Marketing and tenant screening
- Rent collection
- Maintenance oversight
- Accounting and reporting
- Eviction
These services do come at a cost, but can often lead to an increase in gross profits. You stand to make more money while doing less work.
Are There Alternatives to Turnkey Property Management?
Sometimes, landlords need a third party to fill in some gaps, not take over the entire business. If you're looking for a middle ground, you're in luck.
Turnkey property management isn't the only thing a property manager can provide. You can also invest in individual services like tenant screening.
This is a good option for landlords who live within one hour of their rental and have the availability to take care of a portion of landlord responsibilities. It's also a good way to test out property management companies to see if they're a good fit before switching to a turnkey strategy.
Call PMI Aspire for Customizable Property Management
We're getting ready to face an unusual rental market here in Denver. For the first time in years, competition for renters is dropping due to oversupply. Now is the time to decide what approach you'll take to avoid increasing vacancies.
At PMI Aspire, we provide both turnkey property management and customizable plans. We use a combination of the latest rental technology and a tenant-first approach to ensure both landlord and resident satisfaction. Contact us today to learn more.
