How Do I Manage My Own Rental Property? Your Questions Answered

Homeowners new to the rental market often ask "how do I manage my own rental property?" This Q&A guide will walk through some of the most common questions around becoming a landlord and the time commitment of self-managing your own rental property.

Question: How do I find quality tenants without a property manager?

Finding the right tenant is the single most important task a homeowner has. Generally this is handled by a property manager, but if you're going it alone, you will need to get a real understanding of the way that real estate platforms work, like Zillow, Trulia, and Realtor.com.

You will also need high-quality, professional images of your property and for maximum results, a video walkthrough or virtual open house. This will help hook prospective tenants.

Once you’ve mastered the underlying processes, you will have to post your property, review applications, show the house, and make your decision. All that can eat a couple of hours a day, for as long as it takes to rent your place. 

During the “find and secure a tenant phase,” depending on whether you have a broker to show the property or if you are doing it yourself, you should budget between 15% and 40% of your time to the task, with the expectation that the process will take at least a month.

Question: How can I screen tenants myself?

Before accepting a new tenant and having a lease drawn up, you will need to spend the necessary time and money on credit and background checks and identity verification as well.

Your tenant screening process needs to address the following:

1. Reviewing applications and looking out for errors and omissions
2. Verify income and creditworthiness
3. Investigate and verify self-employment financials 
4. Arrange a background check to look for a history of evictions or criminal activity

You can hire a tenant screening company or use software to assist with these tasks, which we have outlined in this post.

Question: How much time does it take to manage my own rental property?

The answer of the time commitment for self-managing a rental isn't a straightforward calculation. The amount of time you need to set aside for property management not only includes the time required for the expected obligations you will have, but also for the unexpected.

The expected requirements are reasonably obvious to everyone who has owned a rental property; they range from having to find great tenants and screen for them, to making necessary updates and repairs, to collecting rent and maintenance. But it is the unexpected demands that are the most troublesome and vexing for homeowners and managers, because they appear unexpectedly and can disrupt your daily life.

Whether it is something you can plan for – or otherwise – every responsibility you take on has sub-tasks and sub-sub-tasks beneath them. It is these layers of work that many homeowners fail to take into account when they are deciding whether to hire a property manager or take the task upon themselves.

Question: How long will it take to prepare my property for rent? 

We all know the complexities involved in renovations and repairs; even relatively minor “freshening” tasks like painting, or having the floors done, or deep cleaning of kitchens and bathrooms, takes time: you have to find contractors, check their backgrounds, and then manage the process. 

During the most intense period of this work – when you are getting your place in shape, and are under pressure because the longer your place remains vacant, the less money you’re taking – you should allocate for as much as half your time on a combination of taking bids from contractors, supervising the work, and acting as a mini-general contractor, as you manage painters, plumbers, and electricians.

During the renovation and repair phase, time demands vary wildly, depending on how much work the property needs, or how much staging is required. If the property only needs some light work and staging, you could be away with 10% of your time. But if you’ve inherited a place that hasn’t been touched for years – or if it needs a ton of work to bring it up to market standards – it could take half your time for a month, or more.

Question: Is their software for landlords I can use to self-manage my rental?

Yes,  there are a number of platforms out there that can assist self-managed landlords. For example, Quicken offers a landlord package, as do dedicated platforms like Doorloop.

Keep in mind, though, that like any software, it takes time and effort to learn and acclimate yourself to these systems. And it is not going to eliminate the manual work since many local contractors don’t have e-billing, so you will need to manually enter the paperwork, and scan the invoices into the system. Accurate record-keeping is essential to make sure you’re prepared when tax season rolls along; we’ve heard many stories about “shoebox” filing systems, and how homeowners who tried to save time during the year-end up spending hours upon hours organizing a year’s worth of records for their accountants.

Once the tenant is in place, assuming your work will involve collecting the rent and normal maintenance, you should get by with between an hour and two hours a week.

Question: Is there an alternative to hiring a property management company without doing all the work myself?

There’s a lot to keep track of as a landlord, so getting into that business solo isn’t for the faint of heart. Belong is redefining what it means to work with a property manager. We’re not a traditional property management company, but rather a long-term rental platform dedicated to reinventing the home rental experience.

So if you’re ready to become a successful landlord, but don’t want to deal with all the time-consuming nuts and bolts from tenant screening and property taxes to understanding the rental market and bookkeeping, let’s get started.