1st time owner and landlord

3 Replies

Hello. I just purchased my first rental property (a condo) and this will also be my first time being a landlord - ever. To save money I am bypassing hiring a property manager initially as I need to recoup many upfront expenses. So I’m going for it! Fully renovated, modern turn-key property. I do not anticipate maintenance issues. I think it should be fairly easy to manage.

I am currently going through the screening process with prospective tenants. Is it OK that I let them know that I’m both the owner and the property manager? Or should I just let them know I’m the property manager and pretend like I’m not the owner?

Are there Issues with them knowing that I’m also the owner? Does it matter?

Thank you!

Elana

If you think a professional is expensive, try hiring an amateur!

Stepping over dollars to pick up dimes.

I manage rentals for about 150 owners. Over half of them came to me for help after trying to manage on their own, usually for 10+ years. With 350 rentals, I haven't had to evict a single tenant in five years but I've done dozens of evictions for Landlords that came to me for help. The amount of money they've lost far exceeds what it would have cost to hire me. Some nearly had mental breakdowns from the stress. Why? Because they thought they could save 10% by not hiring a professional. In reality, they rented their homes below market, they were fooled by tenant sob stories that cost them months of rent, they hired expensive attorneys to handle simple things, they allowed tenants to trash property for years, and much more. Most of these owners make more money AFTER hiring me than they ever made on their own and they don't have the headaches. Your experience may differ and I wish you the best.

As for pretending to be the PM and not the owner, I always recommend honesty. If you can't be honest and still manage the property, that demonstrates you're not suited for the job.

Personal opinion.

@Nathan G. Definitely disclose that you own the property and try not to smile too much when meeting prospective tenants. They’ll walk over you if they think you’re too nice. Be honest, firm and be sure to screen your tenants thoroughly. Congrats and good luck.

I would hire a PM if you think you cant handle saying no to a single mom with 2 kids and sob story. That was the toughest thing to do in my own personal experience.

You don't indicate where you are.  Treat tenants as tenants, not friends.  Don't let people take advantage of you -- because they absolutely will: even tenants who are white collar professionals (especially so)