Back HomeHiring a Property Management Company versus Managing it Yourself
The dynamic nature of a college town such as College Station, TX presents several questions for property owners, one of which is deciding between hiring a professional property management company or opting to manage a rental property by themselves.
If you find yourself in this predicament, continue reading as we explore what each option means for College Station property owners, including the pros and cons of property management.
HIRING PROPERTY MANAGEMENT COMPANIES: PROS
- Professional expertise and experience
One of the biggest advantages of getting property management companies in College Station is that they bring specialized knowledge of the local market, including Texas property laws, zoning, and local ordinances. This expertise is particularly valuable if you’re new to property investment or juggling a full-time career alongside your rental property responsibilities.
- Time-saving convenience and a sizable professional network
Managing a property in College Station comes with unique demands. Property management companies handle all essential tasks: marketing your property, coordinating showings, screening tenants, managing lease paperwork, collecting rent, and coordinating maintenance and repairs. They’ve also built strong relationships with reliable contractors and service providers in the Bryan-College Station area, which means it’s easier to secure priority service and better rates from affiliated service providers. These connections prove invaluable when your AC fails during a scorching Texas summer or you need quick repairs between tenant changeovers.
- The bridge connecting owner and tenant
Having a professional third party manage tenant relationships is particularly important in a college town. Local management companies have experience handling situations like parent co-signers, roommate changes mid-lease, and the unique challenges of student tenants. They maintain professional boundaries and apply consistent policies for late rent payments or lease violations. Their experience in conflict resolution and tenant communication prevents small issues from escalating into larger problems.
HIRING PROPERTY MANAGEMENT COMPANIES: CONS
- Additional costs
The most significant downside is the cost, which impacts your rental income. Property management companies in College Station typically charge between 8 to 12% of monthly rental income for ongoing management, often one month’s rent for new tenant placement, and may include additional fees for services like maintenance coordination or lease renewal. With the competitive rental rates in certain College Station neighborhoods, these fees will notably affect your bottom line, especially if you’re still paying off your mortgage.
- Less direct control over property
When you hire a management company, you’re delegating daily decision-making authority. While you’ll maintain input on major decisions, you won’t be directly involved in operations. Some local property owners find this challenging, especially if they have specific preferences about tenant selection or property maintenance standards. You might have less say in whether to rent to undergraduate students versus graduate students or professionals or how quickly to address non-emergency maintenance requests.
SELF-MANAGEMENT: PROS
- Significant financial savings
Managing your College Station property yourself means keeping more of your rental income. The money saved on management fees could be substantial, especially with the local market’s healthy rental rates. These savings may be reinvested in property improvements or simply added to your returns.
- Direct control over properties
Self-management gives you complete oversight of your investment. You personally ensure that your property maintains the standards you envision, whether through careful tenant selection, prompt maintenance response, or specific rental policies. You may also build direct relationships with local service providers and make quick decisions about property improvements or repairs.
SELF-MANAGEMENT: CONS
- Additional responsibilities
Self-managing a rental requires significant time and availability. You’ll need to handle property showings during peak seasons, respond to emergency maintenance calls at any time, and coordinate intense turnover periods, especially in late summer. Regular property inspections, maintenance schedules, and tenant communication become your responsibility. Without a management company’s expertise, you’ll need to stay current with Texas property laws and local ordinances, including College Station’s rental registration requirements and property codes. Moreover, you’ll also have to handle any legal issues that arise, from lease violations to potential evictions.
- Emotional investment is a major roadblock.
The emotional investment of direct tenant involvement makes it harder to maintain professional boundaries, especially when dealing with first-time renters such as young professionals or college students and their parents. You might find it challenging to enforce late fees, handle maintenance disputes, or manage security deposit deductions objectively. The stress of being constantly available for tenant needs may impact your personal life and other professional commitments.
If you want to learn more about the pros and cons of hiring a property management company, Berkshire Hathaway HomeServices (BHHS) Caliber Realty is here to help. Call them at 979.694.8844 or send an email today and be better informed.
