What You Need To Know When You Rent Your Home Direct To Tenants

Introduction:

This article explores what you need to know when you rent your home direct. Renting a property in Orlando can be profitable but requires careful management. When renting out your property, you have two options: do you put a sign up for rent by the owner or hire a property manager to handle the process? Are you ready to explore the benefits and drawbacks of each option to help you decide which is the best fit for your needs?

Rent Direct To Tenants:

Renting out your property as an owner means you are responsible for all aspects of managing your property. This includes advertising the property, screening tenants, arranging a lease agreement, holding a security deposit, collecting rent, handling maintenance and repairs, handling legal issues, and enforcing the lease. If things go wrong, you must serve the tenants with an official notice to pay the rent or quit the premises. The next step is hiring an attorney to handle the eviction proceedings.

Benefits of Renting By Owner:

1. The primary benefit of deciding to go For Rent By Owner for your rental property as an owner is cost savings. You can avoid paying for complete turn-key property management as fees range from 8% to 15% of your monthly rental income. This can be significant cost savings unless you rent your home to unqualified tenants and dread trying to collect your rent. Check out our article on tenant screening to help you understand what questions you should ask applicants. https://renterschoicehomes.com/tenant-screening-101/

2. Greater Control:

Renting out your property as an owner gives you complete control over your property. You can set your rental rates, choose tenants, and handle all maintenance and repairs. This level of control allows you to make decisions that align with your goals and priorities. But what if you end up with tenants who don’t pay the rent timely or don’t keep the home in good condition? A good property manager doesn’t wait and deals with delinquent tenants swiftly. You’ll know much more if you read our article on collecting the rent! https://renterschoicehomes.com/is-rent-collection-difficult-and-time-consuming-in-kissimmee/

3. Direct Communication with Tenants:

When renting your property as an owner, you have direct communication with your tenants. This can lead to better relationships with your tenants and a better understanding of their needs. Alternatively, you may become too friendly with them, which can lead to more issues. Giving them your phone number lets you quickly address any issues or concerns, preventing problems from escalating. Or are you already too busy to follow up with tenants’ concerns? If so, a professional property manager might be a wise choice.

Drawbacks of Rent Your Direct To Tenants

1. Time-Consuming:

Renting out your property as an owner can be time-consuming. You are responsible for managing your property, which can take much of your precious time. You’ll need to find an attorney to draw up a lease that complies with any landlord and tenant laws changes. If you buy online or from an office supply store, this might not be up to date or give you the protection you need. A good property management company will have an attorney they use for lease preparation.

2. Limited Resources:

You may have limited resources to manage your property effectively as an owner. For example, you may not have access to the same advertising and marketing resources as a property manager. How about rent collection? Will the tenants have access to pay their rent online? Can they call you or email you with any concerns? What about access to professional tradespeople? Your property manager may be able to offer you discounted repair rates as they use the same tradespeople all the time.

Benefits of Renting Out Your Property Through a Property Manager:

Renting out your property through a property manager means hiring a professional to handle all aspects of managing your property. This includes advertising the property, screening tenants, collecting rent, handling maintenance and repairs, and handling legal compliance issues. Florida’s landlord and tenant laws are constantly updated. A property manager has to keep up with all these things. Do you have the time to ensure your home is legally compliant? Here’s the link to the landlord and tenant laws. http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0083/0083.html

1. Time-Saving:

Renting out your property through a property manager can save you time. The property manager is responsible for all aspects of managing your property, which frees up your time for other activities.

2. Access to Resources:

A property manager has access to a wide range of resources, including advertising and marketing resources, legal resources, and maintenance and repair resources. Often they get discounted rates on all kinds of repairs and replacements as they use vendors often. This can help you manage your property more effectively and efficiently.

3. Expertise:

A property manager has expertise in managing rental properties. They are familiar with landlord-tenant laws and regulations and have experience screening tenants and handling maintenance and repair issues.

Drawbacks of Renting Out Your Property Through a Property Manager:

Cost:

Cost is the primary drawback of renting your property through a property manager. Property management fees can range from 5% for rent collection only to as high as 30% of your monthly rental income, which can be a significant cost over time but may save you money in the long run.

2. Limited Control:

Renting out your property through a property manager means you have limited control over your property. The property manager is responsible for all aspects of managing your property, and you may not agree with all of their decisions. It’s wise to choose a property manager that lets you know what needs doing to your home and is available to discuss your expenditures. You need to be on the same page when spending your rental income.

3. Communication:

Renting your property through a manager means you shouldn’t communicate directly with your tenants. Otherwise, you could end up with a he said; she said situation. For example, the tenant may tell the property manager that you said they could have new carpets, and you don’t remember talking about it. All communication about the home and its repairs and replacements should be done through the property manager. Some tenants may emotionally appeal to you not to increase their rent when renewing their lease. As an owner, you may like how they keep your home and don’t want to upset them. A good property manager knows small increases over time, and keeping your rent aligned with what other homes are renting for is in your best financial interest.

Professional Licensing

In Florida, as a homeowner, you can rent your properties directly to the public. If you want to rent homes other people own, you must be a licensed Real Estate Agent. With that comes mandated continuing education to stay current with all the legal updates and changes to the landlord and rental laws. A good property manager will also have years of experience dealing with everything from hurricanes to tenants who have fallen out with each other and want to move out before the end of the lease. At McCormack Realty & Renters Choice Homes, we’ve heard it all. We carefully check our tenants, background, credit, and references. Over the years, you develop an instinct for who will be a problem tenant and, most times, move on to the next applicant and avoid the ones who may not be a good fit for your rental home. None of us want tenants that lack secure income and seem unreliable. Call us at 407-933-2367, in the UK at 0161-300-9595, or email hello@renterschoicehomes.com, and you’ll be glad you did!

Conclusion:

When renting out your property, you have two options: renting out the property as an owner or hiring a property manager. An owner renting out the property to tenants directly might initially have more rental income. Still, financial gains can be wiped out quickly if you’re not an attentive property manager. You may be good at collecting your rent on time and have no issues with direct communication with tenants. Still, it is time-consuming, and do you want to answer the phone at 9 pm if the tenants have a severe maintenance emergency?

Hiring a property manager can save time and provide access to resources and expertise. They are professional rent collectors and troubleshooters and know every trick tenants might use to defer paying their rent on time. Some of our owners, who used to rent directly to tenants, tell us they get more rental income from us, plus peace of mind, knowing that someone is on call to deal with any emergency. Choosing between renting the property as an owner or hiring a property manager depends on your needs and priorities. Consider the benefits and drawbacks of each option before making a decision.