5 Challenges to Managing Multiple Rental Properties on Your Own

Being a landlord can be extremely rewarding, especially if you’re turning a profit. For most investors, owning and managing one rental property is easy. Managing two or three is even doable for someone with a bit of appetite. The thing is, once you go beyond that, self-managing your rental properties can start to feel like, or become, a full-time job. Managing multiple income properties certainly comes with its challenges, but they may all be worth it! Let's discuss 5 challenges that all do-it-yourself landlords run into at some point or another:

1. Marketing and Showings  

If you have vacancies, which all landlords will from time-to-time, one of the first challenges you’ll have to face is filling those vacancies, which requires you to show the property. Not only will you have to set up some online marketing with pics and a description for each unit you need to fill, but you’ll have to get them on the phone and schedule a date and time for them to walk through with you. Showing property to prospective tenants can be very time consuming, especially if the local market demand for rentals is low or you're entering a difficult time of year (like winter) when fewer people are moving anyway.   

2. Tenant Screening and Selection

 Even if you can handle showings and scheduling on your own for potential renters, you’ll also have to take on the challenging task of screening and them and making the right selection. At Robert C. White & Company, we have access to detailed credit reports, landlord histories, and more...but without professional tools at your disposal, how can you be sure you’re equipped to handle the task effectively. Picking the perfect tenant isn’t easy, and it doesn’t always happen quickly...but if you do get this part right, you’ll make your life easier while managing a property with quality renters. 

3. Maintenance and Repairs  

Whether you’ve got good, bad, or indifferent tenants in your properties, perhaps the most time consuming challenge that self-managing landlords deal with is coordinating maintenance and repairs. Even for a super handy owner, scheduling and completing even minor repairs at multiple properties can be incredibly time-consuming. The fact of the matter is, owning multiple properties and having many different types of maintenance problems, you’ll need to develop a list of trustworthy contracts that can help get things done quickly. Even if you do hire out maintenance and repairs, it still takes time to schedule and coordinate events. And you’ll need to keep your list of contractors large enough to handle requests at multiple properties at the same time.

4. Tenant Disputes  

A large part of managing multiple rental properties is having to deal with constant tenant disputes and complaints. When maintenance items linger or a neighboring pet keeps your tenant up all night, you’ll need to act promptly to resolve their issue. When a renter is paying on time and caring for the property as outlined in their lease, they’ll expect fast and quality service to resolve things. This is why self-managing owners are often labeled “slum lords,” because they don’t have the time and resources to develop a good relationship with their tenants and stay on top of disputes and ongoing issues. 

5. Time Management  

What’s the biggest challenge for many self-managing owners? Of course… time management! Owners with multiple properties may feel like they are getting pulled in 10 directions at once, so you’ve got to get smart about managing your working hours. The goal for most investors is “passive income,” but that’s hard to accomplish if you’re constantly needing to market vacant units, collect rents, and manage repairs across the board. This is why many investors find a property manager worth while once they have gotten their hands on more than one property. With average management fees around 10%, landlords can take a back seat and let their investment grow while a professional handles the stresses of management!

A Final Word

Whether or not you’re a multi-property investor already, or are just getting started in your landlord journey, anticipate and expect these challenges along the way. Only if you’re smart and efficient in your processes, will you be able to self manage effectively (and without losing your sanity)! 

Here's to wishing all landlords and tenants health, prosperity, and happiness in the new year!

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