Smart investors understand the value of professional property management in Lakewood. Yes, there are management fees involved but the money you save on long vacancies, expensive legal mistakes, and evictions and property damage due to bad tenants more than make up for the cost. Property management fees are also tax deductible.
Managing your own Lakewood rental property might seem like the more cost-effective option, but it’s not. DIY property management can be expensive. It’s easy to make a costly mistake, and you don’t want to risk your investment property or your financial stability by making the wrong decision or ignoring an important law.
We’ve seen some of these common costs take self-managing landlords by surprise. If you’re not working with a property management partner, make sure you’re protecting yourself against these potential problems for your ROI.
Vacancy Costs and DIY Management
Vacancy is a big money waster and. You don’t have any rent coming in, and you’re also paying for utilities, rental property maintenance, landscaping, security, and marketing. Avoiding vacancy is an important part of earning money on your investment, and a lot of landlords don’t realize how much it can cost and how long it can take to find a tenant, especially if you don’t have access to marketing resources and advertising networks.
Unless you have a lot of time to dedicate to these tasks, and the experience to know how they need to be handled, it’s best to hire someone to do it for you. Otherwise, you’ll lose money on vacancy.
Placing the Wrong Lakewood Tenants
Good tenants will lead to on-time rental payments. They’ll take care of your property, follow the terms of the lease agreement, and communicate openly. These are the renters you’re looking for, because bad tenants will only cost you money. You’ll find yourself working overtime to collect late rent. You may face property damage that goes beyond the security deposit after those tenants vacate. You may find yourself navigating an eviction.
How do you know you’re placing reliable tenants as a DIY landlord? Property managers have access to better screening tools. You’ll find there’s less risk and far fewer expenses associated with bad tenant experiences when you work with professionals.
Legal Liability and the High Cost of DIY Mistakes
There’s always risk involved in renting out a property, and landlords take on a lot of liability when they begin leasing a home to tenants. It’s one of the best reasons to hire a professional Lakewood property manager.
We have talked to a lot of self-managing rental property owners who weren’t sure how to enforce a lease, collect rent on time, or return a security deposit. You need to understand the eviction process, the difference between a service animal and a pet, and how to comply with Colorado’s security deposit laws.
A fair housing mistake can cost you tens of thousands of dollars in fines and you also could potentially face lawsuits and tenant disputes in court. These things can get complicated quickly, and you don’t want to face the consequences of inaction or bad decisions.
Unexpected Maintenance and Repairs are Expensive
Maintenance costs are rising for Lakewood rental property owners, just like they are in every other market. DIY landlords are often shocked when they call a plumber or a roofer to respond to a repair need. Vendors who are reliable and available can be hard to find, and you don’t want to be looking for someone when your property is flooding or the furnace isn’t working.
Self-management can be more expensive because professional managers have more buying power. We provide vendors and contractors with a large volume of work and in turn, they give us their best rates and deepest discounts.
We can help you keep your costs down. You may be surprised at how affordable Lakewood property management can be. Please contact us at Assured Management, Lakewood property management experts serving residential landlords in West Denver and the surrounding areas, including Littleton, Golden, Wheat Ridge, Arvada, and more.