Palm Desert Property Management: DIY vs. Professional Management Services

Once you own some real estate investments or even one rental property, you’ll need to decide how to lease, manage, and maintain that asset. Will you do it on your own, or will you partner with a professional Palm Desert property management company?

The decision to manage your rental property on your own or to hire a team of professionals can be a difficult one. You’re probably not thrilled with the idea of paying a management fee every month. However, you’re getting more than basic management services with that fee; you’re leveraging expertise, resources, and technology that can only be found with a professional. 

As a real estate investor, you want to make the best decision for your investment portfolio. That’s why we’re here to show you what some of the costs and benefits might be to professional management services when you compare them to DIY management. 

What to Know about DIY Property Management in Palm Desert

If you choose to manage your rental property on your own, you will be responsible for all aspects of the property, including: 

• Accurate pricing
• Finding, screening, and retaining tenants
• Collecting rent and enforcing the lease
• Maintenance and repairs
• Accounting
• Legal compliance

That’s quite a list, and it doesn’t even cover everything. It’s a brief overview of what your everyday management needs will entail. You’ll also have to deal with your tenant relationships. You’ll need to negotiate prices with vendors and think about renovations and improvements. While this approach may seem cost-effective because you’re avoiding leasing fees and management fees, it can become overwhelming and time-consuming, particularly if you have more than one rental property.

You have to decide if you want to be a landlord or an investor. Landlords are always going to be more hands-on when it comes to their rental properties. Real estate investors are going to be less involved in the operations and more interested in the outcomes. 

Professional Palm Desert Property Management

If you choose to hire a professional property management company, you can expect your management partners to expertly take care of all the responsibilities mentioned above. We have the market knowledge, the industry experience, and the processes already in place to ensure the rental experience is positive for your tenants and profitable for you. 

Smart investors understand that professional management has the potential to maximize your investment return. Additionally, we are able to stay up-to-date with the latest landlord/tenant laws and regulations, so you can avoid legal pitfalls. This is an important benefit. California is notoriously tenant-friendly. The protections in place touch rent control, eviction, Section 8 applications, fair housing, and habitability standards. If you’re not sure what the new security deposit restrictions mean for you, it’s possible you’ll find yourself in legal trouble. If you cannot identify the differences between a service animal and a pet, you could find yourself under investigation because of a discrimination complaint. 

Understanding Costs and Benefits

With DIY management, you won’t have to pay anyone a fee. This is true. One of the main benefits of managing your rental property on your own is the cost savings when you look at what you’re spending every month. You won’t have to pay a property management fee, which can range from 8 percent to 12 percent of the monthly rent or may be a flat fee. 

Another benefit to self-management is that you’ll have complete control over your property, from deciding which improvements to make to screening tenants.

However, your property management fees and your leasing fees are tax-deductible. You can claim these expenses as operating expenses on your taxes every year. You also have to consider what you’re getting in exchange for that fee. Sure, you’ll get a tenant placed and repairs attended to, but you’re also paying for: 

• Technology such as the convenience of online rental payments and digital accounting statements that accurately reflect income and expenses.
• Market knowledge and data that can help with pricing, improvements, renewal rates, and tenant satisfaction.
• Better tenant relationships, which lead to less turnover and vacancy.

You’re also getting lower maintenance costs and more peace of mind. Finding your own plumber or roofer or landscaper will cost you more than what you’d pay using the vendor or service provider that contracts with your property manager. Because of the volume of work we provide such contractors, we’re able to negotiate deeper discounts. That means fewer maintenance expenses for the owners and investors we work with. 

One of the main benefits of hiring a professional property management company is the peace of mind you’ll get, knowing that your property is being managed by a team of experts. Additionally, we can help you avoid common landlord mistakes that can result in legal troubles and financial losses. A Palm Desert property management company can quickly identify potential problems and resolve them before they escalate into more significant issues.

Communication and Relationships 

If you decide to manage your rental property on your own, you will need to have excellent communication and interpersonal skills. You will need to be comfortable dealing with tenants, resolving conflicts, and negotiating with contractors.

When you hire a professional property management company, you won’t have to worry about communication issues. We already have protocols and systems in place to ensure that all communications are professional, prompt, and effective. We will also provide you with regular reports and updates, so you always know what’s happening with your property.

This is a very personal decision. Maybe you’re excited about the idea of managing your own investment property. Or, perhaps the idea of taking on another job is not something that thrills you. 

You’ll have to come to your own conclusions based on your circumstances and your investment goals. However, the benefits of hiring a professional property management company are clear. We have been doing this effectively for years, and we know we can save you time, money, and hassle while providing you with peace of mind. 

Talk to us about the best ways to manage and protect your Palm Desert property. Contact us at Xepco Properties.