New to being a landlord

[Sandra Gutierrez]

We’re planning to rent out our first house in the next few months. It is a single family home and we’ve never been landlords before. Considering using a property management company, but that would significantly reduce our cash flow because we still have a mortgage. Would you recommend self managing for newbies or would you strongly recommend a property management company? 

[Alecia Loveless]

@Sandra Gutierrez I self manage 7 properties with 25 units and looking to grow. It takes me about 5 trips to the bank during rent time and maybe 30 minutes to deal with tenants mid-month and then once a week I drive by the properties.

I have just quit my job to do this full time and take on more rentals.

I think if you can get a good team, hopefully a good handyman, plumber, know of a good electrician and a good HVAC or furnace guy depending on where you live, and follow through with late fees and posting notices when someone goes past the late fee (you have to train your tenants or they will always take advantage of you) then you will be fine.

If you’re not prepared to treat it like a business and you’re afraid of hurting peoples feelings then hire a property manager.

But it’s really pretty easy. Everything you need to know should be able to be found on the state’s landlord website. It’s dry reading but it’s there.

Also keep all your financial records separate for the rental from your personal and see if you need a separate account for the security deposit.