Most importantly, in a post COVID world managing housing is simply very hard. The stakes are also much higher, which makes people much more aggressive and unwilling to accept problems. Maintenance issues have increased dramatically in frequency and severity, great contractors are a nightmare to secure and we have a 98% failure rate when we contact a potential target, yet we must do this constantly because even our more established vendors tend to fail eventually.. The technology to properly manage a rental is getting very complex and expensive, and sites that were once free to landlords now charge or throttle your listing. Renters tend to be cautious about renting from a private landlord because they know their quirks are more likely to shine through and cause them unhappiness. Or that the technology for online payment and maintenance is less likely to be there, deposit charges will be less standardized, and speed of repairs is more likely to be subpar
One huge reason we discuss in other questions, and that is the fact that management expenses are tax deductible, which makes it much more affordable than most account for. Another issue most landlords fail to account for is the value of your time. If you have little better to do then great, however most of our customers have careers they are excellent at, as well as flourishing personal lives. In these cases it typically makes sense to let a dedicated low cost pro handle the headaches so you can focus on what really matters. Other reasons include…
Risk: Unfortunately we’ve have had many owners come to us after suffering massive losses. Problem tenants are usually astonishingly effective at manipulating inexperienced landlords, and even those who are very experienced if they lack discipline at any point. Furthermore, even good tenants can overstep their boundaries at times, especially when the rules and expectations aren’t crystal clear & consistent. The laws regarding how to handle rental problems are extremely detailed and lengthy, so by the time a major problem is addressed, in most instances a large amount of damage has already occurred. Failing to word a document properly or moving too quickly in many situations can lead to a lost eviction hearing and costly delays, not to mention a possible civil suit filed by the tenant.
Time. Rental Management requires a large amount of time even in great situations. Standard tasks include documentation, scheduling, marketing, accounting, etc. Many of these services require expenses of their own. Now mix in a picky or problem tenant, and you could quickly find yourself drowning in tedious, time consuming research to figure out your best legal & strategic options. Now that you’re half way there, you then have to begin to execute those tasks quickly & effectively.
Convenience, for what is effectively very little cost. As we mentioned before, management fees are tax deductible so most landlords typically get a 30% discount off of their management costs at tax time. In this light, it’s exceptionally difficult to justify the time spent for self-management, relative to the minor cost even for an average management experience. In most cases a phenomenal manager like Victory will earn their customers a large amount of additional net income (after management expenses) by increasing revenue, decreasing expenses, and minimizing risk. The combination of these three factors can be extremely lucrative while also freeing you up to focus on what is truly important in your own life. In addition to basic tenant/property services we also include at no charge ACH rent deposits saving you dozens of trips to the bank and allowing funds to clear much faster, end of year tax accounting, contractor referrals, 24/7 emergency availability, and much more
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