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In Chicago's hot rental market, more landlords are opting to self-manage their rental properties instead of hiring a professional property management company. Self-managing a rental home or apartment building in Chicago can save money but also requires a major time commitment. As a house self-manager, you need to handle all aspects of the rental process, from marketing and tenant screening to maintenance, repairs, and lease enforcement.
Pros of being a house self-manager:
- Save on management fees. By self-managing, you avoid paying the typical 10% of rent charged by most Chicago property managers. This can mean thousands of dollars in savings per year for larger buildings.
- Maintain control. You have direct control over all parts of the rental process, including setting rent amounts, choosing tenants, and overseeing repairs. You don't have to rely on a third party to manage the property.
- Build equity. Any money you save on management fees and through effective cost control goes directly into your pocket, helping you build equity in the investment property.
Cons of being a house self-manager:
- Significant time commitment. Self-managing requires handling all tenant issues, maintenance requests, repairs, rent collection, and lease enforcement yourself. This can take 20-30 hours a week for larger buildings.
- Learning curve. If you're new to being a landlord, the responsibilities of self-managing a rental property can be challenging to learn. It may take time to get up to speed on Chicago landlord-tenant laws and best practices.
- Tenant conflicts. Dealing directly with tenant complaints, non-payments, move-outs, and evictions can be difficult and stressful. Professional property managers are better equipped to handle these situations objectively.
- Emergency response. As a self-manager, you alone are responsible for addressing emergency maintenance issues like plumbing leaks or HVAC problems. This requires being on call 24/7 to respond to urgent tenant needs.
For many Chicago landlords, self-managing a rental property is a good way to maximize financial returns. But before taking it on yourself, make sure you understand all that is involved in being a self-manager and are prepared to commit the necessary time to do it right. With the proper systems and knowledge in place, self-managing can be very rewarding. But for some, hiring a professional property manager is still the better option. Contact us today and get your free consultation.
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