Property management is often an overlooked responsibility that can seem deceptively simple. On the surface, it appears to be a straightforward role, but it becomes far more challenging when faced with issues like non-paying tenants requiring eviction or broken systems that haven't been properly followed.
As a self-managing property owner, it is absolutely doable—but success depends on treating it like a business. The key is establishing strong systems and processes.
As mentioned earlier (KISS—Keep It Simple, Stupid), there's no need to overcomplicate things. Simply document everything you do and create your own Standard Operating Procedures (SOPs). This will provide consistency and clarity in how you handle your properties.
Start by reviewing your current Property Management (PM) agreement. Make sure there are no automatic renewals or hidden fees that could catch you off guard. Have a conversation with your property management company well in advance of any transition to ensure you are fully aware of all terms and conditions. If you have only 2-3 rental properties, I would recommend taking full control of management at once rather than transitioning one at a time. Once you commit to this, it can actually be quite rewarding to provide housing to tenants.
For contract renewals and rent increases, the first step is to familiarize yourself with local laws. Once you’re informed, we typically give tenants a 60-day notice for renewal, along with the new rent amount if there’s an increase. If a tenant chooses not to renew, we start marketing the property 30 days before the lease ends. We ask for a decision no later than 30 days before the lease expiration.
When it comes to rent increases, the market largely dictates what’s feasible. Your property type and location are key factors in determining this. For instance, if you are renting homes at $2,200 per month and decide to raise the rent by 3.99% (bringing it to $2,287.78), the likelihood of tenants moving out is generally low, especially if the market supports that price.
Best of luck in your property management journey!
