Being a landlord means you are the marketer, leasing agent, maintenance coordinator, and financial manager all in one. This path carries financial risks that are not always obvious.
Many landlords in Atlanta choose to manage their properties themselves, believing it will save money and give them complete control. However, a hands-on approach can incur additional expenses. From the cost of your own time to the price of a legal misstep, various expenses can diminish your profits.
It’s important that landlords understand the hidden costs of managing a property on their own in Atlanta to protect their investments and maximize returns. This guide explores the real financial impact of self-managing your Atlanta rental property and shows why professional support is a smart investment.
Tenant Screening
A vacant property generates no income, creating pressure to fill it quickly. Urgency can lead to rushed decisions and inadequate tenant screening.
Effective tenant screening involves more than a quick credit check. It requires comprehensive background checks, verification of employment and income, and conversations with previous landlords.
These services have a price. Subscription-based screening services can cost hundreds of dollars annually. Without them, you risk placing a tenant who may pay rent late or cause damage to your property. A difficult tenant can lead to eviction, a process that brings its own set of expenses.
Prolonged Vacancy
Long vacancy periods will also drain your finances. Every day that a property remains empty is a day of lost rent.
Professional property managers have marketing channels and a wide network to attract a large pool of applicants, reducing the time your property is vacant. They use professional photography and compelling property descriptions to make your listing stand out in a competitive market, filling vacancies faster than a singular landlord can accomplish.
Maintenance and Repair Costs
Maintenance is an unavoidable part of owning a rental property. When a tenant calls with a problem, you are responsible for finding a reliable contractor, coordinating schedules, and overseeing the work.
Without a network of vetted, affordable vendors, you might end up overpaying for repairs. Emergency repairs, like a burst pipe or a broken HVAC system, come with premium charges.
A property management company has established relationships with trusted local contractors who offer competitive pricing and priority service. These relationships can lead to substantial savings on both routine maintenance and emergency repairs.
Additionally, landlords who are stretched too thin with numerous responsibilities may overlook preventative maintenance. Routine inspections and upkeep can identify small issues before they become expensive problems. For example, fixing a small roof leak is much cheaper than repairing extensive water damage.
If you ever become overwhelmed by repairs and maintenance, a property management service can alleviate some of the stress. They schedule and perform these routine checks, thereby preserving the value of your asset and preventing costly repairs in the future.
Landlord-Tenant Laws
Atlanta and Georgia have detailed landlord-tenant laws that govern everything from security deposits to eviction procedures. Navigating legal requirements without expert guidance is risky. A simple mistake, like improperly handling a security deposit, can result in lawsuits and financial penalties.
For instance, Georgia law dictates how landlords must hold and return security deposits. Failure to comply can lead to a tenant suing for three times the deposit amount plus attorney’s fees. Similarly, the eviction process has strict legal protocols. One procedural error could dismiss your case, forcing you to start over while the unpaying tenant occupies your property.
Legal fees can accumulate quickly. Hiring an attorney to handle an eviction or defend you in a dispute can cost thousands of dollars. It’s important to do everything in your power to avoid legal complications and adhere to the state and city’s guidelines.
Real estate asset management services provide protection against legal pitfalls. Their teams are well-versed in local and state laws, helping you stay compliant and avoid expensive legal battles.
Time Commitment
Perhaps the most underestimated cost of DIY property management is the value of your own time. How much is an hour of your time worth? Now, multiply that by the hours spent marketing your property, showing it to prospective tenants, answering late-night maintenance calls, and dealing with administrative tasks.
Being a landlord is not a passive investment when you manage it yourself. It is a job that demands attention at all hours. This time could be spent working on your primary career, with your family, or pursuing other investments.
When you hire a property management company, you are essentially buying back your time. You transfer the day-to-day responsibilities to a team of professionals, allowing you to enjoy the benefits of your investment without the operational headaches. This freedom is a valuable return that goes beyond the numbers on a balance sheet.
Emotional Toll
Some landlords sacrifice their well-being to run their properties. Remember that the price of your mental health is also valuable. As a landlord, you’re often the first point of contact for tenant complaints, late-night emergencies, and disputes. This constant responsibility can cause stress, frustration, and burnout.
Your goal is to have long-lasting, successful investments and good tenant relationships. It’s not easy to navigate difficult conversations or enforce rules, especially when tenants face hardships. Professional property management services can alleviate this burden. By acting as a buffer between you and your tenants, they handle the day-to-day interactions and conflicts, allowing you to focus on other priorities.
Protect Your Investment
Managing your own rental property can seem like a cost-saving measure, but it often proves to be the opposite. The hidden costs of being a DIY landlord—including extended vacancies, expensive repairs, legal troubles, and the loss of your personal time—can quickly diminish your profits.
Choosing professional property management services is an investment in the profitability of your rental property. The experts at Excalibur Homes understand the Atlanta market and are ready to handle the heavy lifting for you. From free tenant placement to hassle-free management, we turn your investment challenges into opportunities for growth. Contact us today so we can learn about your investment goals and help you become a better landlord.