Have you recently invested in (or are about to invest in) a turnkey property in Clarksville, TN? If so, congratulations on making a wise financial decision.
As Investopedia points out, turnkey properties have the potential to bring high returns with minimal risks. However, you must still conduct the right due diligence.
One way to perform due diligence on your investment is to decide who to entrust with your turnkey property management tasks. You have two primary options: you can do it yourself (in-house) or hire a third-party professional property manager.
The real estate experts at PMI Clarksville have prepared this property management comparison guide, so read on to discover their pros and cons and when to go for which.
Third-Party Turnkey Property Management: Pros and Cons
Data from ZipRecruiter.com shows that the average annual salary of landlords in Clarksville, TN, is $75,882, with the highest earners making up to $131,280!
However, to achieve your property's full income potential, you must prepare yourself for the 24/7 job that being a landlord entails. You must also familiarize yourself with rental housing laws, such as those that regulate fair housing and evictions in Clarksville, TN. You also need to:
- Market your property
- Screen your tenants fairly
- Collect rent
- Perform regular property maintenance and repairs
- Keep accurate accounting and financial records
As you can see, there's a lot involved in being a landlord. So, if you want to earn like one but enjoy fewer responsibilities, consider working with a third-party provider of full-service turnkey property solutions. Outsourcing property management to a reliable firm frees up your time since you'll delegate all the above tasks to professionals.
The primary drawback to hiring third-party property services is the cost. According to The Balance, property managers typically charge between 8% and 12% of the gross monthly rent.
In-House Turnkey Property Management: Perks and Pitfalls
In-house management benefits your finances because you won't have to pay anyone else but yourself to manage your property. So, by managing your property yourself, you can keep a more sizeable chunk of the rental payments (minus operating costs).
Remember, though, that if you opt for in-house management, you'll perform all the abovementioned tasks. Yes, you won't have to pay anyone else, but you could face the price of experiencing significant landlord stress. From making yourself available 24/7 for emergencies to having non-paying residents and evicting renters, these are just some of the pitfalls of managing rentals in-house.
Which Should You Choose, Then?
If you're 100% sure you can commit as much time, energy, and resources to being a landlord, you can opt for in-house turnkey property management. However, if you think you'll need help with one or more (or all!) of your landlord duties, your best bet is to hire a third-party, full-service property management firm.
PMI Clarksville is a premier provider of rental property services and management solutions in Clarksville, TN. Our owner, Larry Krieg, is a retired Army veteran and brings over 20 years of management and leadership experience to the company.
Contact our team today to learn how we can help you run your rental business and request a complimentary property analysis!
