So there’s a couple of things you need to consider if you’re going to go the self-management route and help you kind of think through some things a lot of investors are thinking through.
So on the front end, finding a quality tenant showing the property is a big time suck.
There are tons of people who reach out about us or are you able to handle all the incoming inquiries?
Are you able to respond to all their questions? And then you’d be able to take time out of your day to go to the house and show it to them.
A lot of times they’re wanting to do it either during the day or in the evening would you would want to be home or you get something else in your plate.
So are you able to spend the time during the day at nights and weekends to go out to a property and show it to prospects?
Talk to a number of investors who they will have people set an appointment with them and as a nutshell.
So you know, that could be wasted of 10, 15 even an hour a day, depending on how far away your property is.
Recently, they have come out with a couple of different apps and websites that will help you do this.
But this is the number one mistake I see and hear from a lot of investors making is they wanted to minimize the vacancy.
So they want to just get somebody in there quickly. So are you able to screen their income properly?
Are you able to verify employment? Or are you able to do a background check?
So are you able to do all the things and check all of the kind of boxes that would fit for a quality tenant?
There’s a couple of applications websites called cozy. I know Zillow offers an application on their own.
The other thing you have to keep in mind of is, especially in Colorado and Boulder there are certain laws that apply Colorado specifically that are not in other states.
You would want to make sure that their approval criteria are in line with any of the most recent law changes.
So along the same lines of approving qualified tenants, you want to make sure as you’re managing the property as you’re leasing the property that one, you are aware of all the fair housing laws that you need to abide by and number two, that you’re able to follow them to a tee.
Fair housing complaints are, yeah, it’s a big liability when you’re renting out your property.
So you want to make sure that you’re up to date with all the most recent laws in your state and nationally and too that you’re able to abide by them.
If you are not, then this is something that maybe self-management price is the best idea and then maybe you would want to go with property management.
So if you are going to do the self-management route, you want to make sure that you’re able to handle 100% of the repairs all the time and in a reasonable amount of time.
And what we mean by handle the repairs is not that you do that yourself.
You don’t even have to be handy, do you have the vendor contracts?
Do you have the vendor contacts that you can reach out to, to handle emergency situations and late-night situations?
If there’s anything that you’re not able to fix yourself. This is a large plumbing issue like a mainline has busted.
Do you know who to call, and who are able to respond to it?
You know, if you’re tied up during the day or if you’re not available on the weekends, this will make your tenants unhappy.
So you want to make sure that you have all of your vendors lined up.
You potentially have a handyman that you can reach out to or if you’re going to do it yourself, you’ve got to make sure that time is something that you are able to devote to this, able to get out to the house, handle these repairs, communicate with tenants, kind of do all the things that you need to do. Colorado specifically, there’s the warranty of habitability.
There are certain guidelines on what you’re able to or what you’re required to fix within a certain amount of time.
Make sure that if you review that warranty of habitability, they’re consistently changing it. And the most recent changes in August of 2019.
Tenants will not keep the house in great shape.
They will not, you know, keep up the house as you want, it probably kept up, especially if this is somewhere that you lived and you have an emotional attachment to, you’ve got to consider are you able to have hard conversations with tenants about the way they care for the home.
And you know, they have a situation in their life that, you know, you want to be able to help them, but are you able to have the hard conversation if you have to talk through eviction if they’re not able to pay their rent.
So if you’re not able to do that and you’d like to keep a buffer, looking at property management would probably be good for you.
But if you’re able to deal with conflict and you can have those kinds of hard conversations and self-management could be a great way to go for you.
So those are just a couple of things to think about.
If you were thinking about self-management vs property management in Boulder, if you have any questions at all, please feel free to reach out to me and I would love to talk through and kind of help you think what’s the best fit for you.