DIY landlording first-timer in Washington, DC ...covering my bases
I purchased a small studio condo in DC a couple miles away from downtown and a 5 minute walk from a popular metro line.
It has been my primary residence, but I'll soon be moving out and I'd like to make it my first rental property. I've done a lot of research on the topic, including some of the great content here at BP. Thanks!
The problem with full-service property management companies is that while I'm sure they offer a valuable service, the fees will cut my monthly profits in half. Not to mention losing a full month's rent for finding the tenant.
Cashflow isn't so good in Washington, DC so there's no chance I'll be able to pull off the "50% rule". Although I have an idea of how to maximize monthly revenue, which involves furnishing and taking care of all utilities.
I've been talking to a property manager although I'm more interested in their a-la-carte screening and lease signing service for a relatively small fraction of the first month's rent.
Here's my strategy:
- Acquire appropriate business license from DC. Clean hands certificate. Rent control exemption. (Any other legal things I'm missing?)
- Use the money I save from not signing on with a property manager to purchase decent furniture to furnish the place. It's a full-service building with all utilities included. I'd pay for internet/cable.
- Advertise on Craigslist. Will look at competing ads to see what works. (Where else? Zillow? Trulia?)
- Conduct open houses and showings myself on weekends. I'm very familiar with the unit and building and am confident I can answer any questions about it.
- Find a tenant (fingers crossed) and send to the property manager for screening, reference checks, etc.
- Tenant signs lease (again, fingers crossed). Collect security deposit to put in escrow account and first month's rent.
- Instruct the tenant to pay me directly via check or wire directly to me every month.
Am I missing anything? Is this too ambitious or am I crazy and should just go with full service property management? Is the furnished apartment rental idea dumb or should I just leave it unfurnished and let the tenant do their thing?
I've also heard that you should call yourself the "property manager" and not refer to yourself as the owner or landlord. What are your thoughts on that?
Sorry for all the questions. In the meantime...I'll continue reading BP articles on the subject.
Thanks in advance!