The Hidden Costs of DIY Landlording:

Why Professional Management is More Cost-Effective

It’s tempting to manage your own rental property, especially if you think you’re saving money.

The truth is, you’re likely spending more than you should. And you’re definitely not earning what you could.

The hidden costs of being a DIY landlord are far higher than a monthly management fee.

What Is Your Time Worth?

One of the most significant costs of DIY landlording is the time commitment involved. Managing a rental property requires a substantial amount of time to handle maintenance requests, screen applications, handle evictions, and stay on top of rent collection. For many landlords, this time could be better spent focusing on other areas of their business or personal life. Time spent dealing with maintenance issues, emergency repairs, or legal paperwork is time that could be more profitably spent elsewhere.

A professional property manager has a team of experts and systems in place to handle all of these tasks efficiently. This allows you to focus on other ventures, knowing your property is in good hands. We give you your time back and leverage technology and systems to streamline the leasing, management, and maintenance of your rental property.

Legal Risks and Compliance

Renting out a property means complying with local, state, and federal laws, from fair housing regulations to security deposits and eviction protections. DIY landlords who aren’t up to date on the latest laws could inadvertently make mistakes that lead to legal action, fines, or costly lawsuits. For example, improperly handling a security deposit, failing to follow the correct eviction procedure, or violating fair housing laws can result in significant financial penalties.

A fair housing mistake, for example, can cost you $16,000 for a first offense. Why risk it?

Professional property managers are regularly attending legal seminars to stay updated on legal requirements and compliance standards, reducing your risk of costly legal troubles. We also handle lease agreements, eviction notices, and other paperwork, giving you the best chance to stay on the right side of the law.

DIY Landlords Spend Too Much on Maintenance and Repairs

Another hidden cost when you do-it-yourself is overpriced or inadequate maintenance and repairs. Landlords without established relationships with contractors or vendors may pay higher prices for services, and they may struggle to find reliable workers. Additionally, without the expertise to assess repair needs, a DIY landlord might overlook issues that could turn into larger, more expensive problems that could have been avoided.

Professional property managers have established networks of trusted, cost-effective contractors and vendors. We can often secure better rates due to their volume of business, and we are skilled in addressing maintenance needs promptly and thoroughly. We work to avoid deferred and unreported maintenance and we take a cost-effective approach to turnovers, saving owners from excessive repair costs.

While managing rental properties on your own may seem like a way to save money, the hidden costs of DIY landlording can quickly outweigh any initial savings. There’s also the opportunity cost. Why wouldn’t you want to leverage the advice and expertise of a team that knows the Sacramento rental market so well?

Let’s talk about what’s possible and how we can help you have a more profitable rental experience. Please contact us at Sacramento Delta Property Management. We’ve been working with owners and investors to effectively lease, manage, and maintain investment properties for more than 40 years.

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