Self-Managing vs. Property Management: Which is Right for Your DC Rental Property?
Nest DC
Rental properties are a great way to earn cash flow, but are not without challenges. From maintenance and repairs to finding tenants and managing leases, a lot goes into owning and managing a rental property. If you have the time and the motivation, managing your own rental property may be something you want to take on. Keep in mind you’ll need expertise, attention to detail, and lots of patience.
If you'd rather not deal with your rental property's day-to-day maintenance (and potential stress), you might want to consider
hiring a management company. At Nest DC, we understand the complexities of property management and are dedicated to providing our clients with exceptional service. Before deciding which route is best for you, here are some things you need to know about managing your rental property in DC.
Emphasizing Fair Housing Practices
In managing a rental property, it is essential to abide by fair housing practices and avoid any form of discrimination. We encourage you to familiarize yourself with the local laws and regulations pertaining to tenant screening and owning a rental property. Hiccups related to fair housing can be, by far, the most costly and time-consuming to overcome. Don't rely on good intentions alone; be sure you know the complex laws in Washington, DC. By adhering to fair housing practices, you ensure compliance and create an inclusive and welcoming environment for all prospective tenants.
Effective Property Advertising
Properly advertising your rental property is a high priority to attracting potential tenants. Utilize large and small rental sites, social media, and your own networks. Make sure your listing has professional (or high-quality) photos, a video tour, and a detailed description so potential renters see your property at its best. When you receive inquiries, respond quickly! Renters will forget and move on from your listing if you do not engage with them right away. Speedy communication and flexibility showing availability maximize the likelihood that people will take you and your listing seriously. Various platforms such as websites, social media, newspapers, and rental guides to increase visibility. However, be aware of the costs associated with each advertising method and choose the ones that align with your budget and target audience.
Thorough Tenant Screening
When screening tenants, following best practices to comply with fair housing laws is crucial. Our previous blog post on Best Practices for Tenant Screening provides detailed guidance. Consider factors such as income, assets, credit history, and rental history while being mindful of limitations set by acts such as the Eviction Record Sealing Authority and Fairness in Renting Amendment Act of 2022 and the Fair Criminal Record Screening for Housing Act. Set clear and consistent criteria for all applicants and evaluate them objectively. Don’t make exceptions to your process once you’ve finalized it.
Setting Clear Lease Expectations
Setting clear boundaries with tenants is vital to being a successful homeowner. Have a well-drafted lease agreement that outlines the rules and expectations for tenants. Consider including specific details such as pet policies, smoking regulations, parking rules, guest limits, and occupancy restrictions. You'll also need tenants to understand the best way to get in touch with you for routine vs emergency maintenance. By clearly communicating these rules and best practices, both you and your tenants will be better prepared, and you can hold them accountable.
Hiring Reliable Contractors
When it comes to maintenance and repairs, you must find reliable contractors. At Nest DC, we have an in-house maintenance team and a network of trusted, local contractors who are experienced in all aspects of property maintenance. If you choose to self-manage your rental property, ask for references from previous clients and ensure they have a proven track record. Not to mention confirming they are licensed, bonded, and insured. Additionally, obtaining multiple bids and comparing prices and quality of workmanship can help you make an informed decision about who to hire.
Abiding by Local Laws and Regulations
Compliance with local laws and regulations is fundamental to managing a rental property in Washington, DC. Familiarize yourself with the necessary requirements, such as having a written lease agreement for each dwelling unit and completing a rental application for each adult occupant. Additionally, ensure that your rental property is registered with the Department of Housing and Community Development (DHCD) within the specified timeframe.
Prioritizing Routine and Emergency Maintenance
Maintenance is an ongoing responsibility of managing a rental property. Implementing a routine maintenance schedule helps keep your property in good working order and ensures the safety and satisfaction of your tenants. Addressing routine maintenance tasks promptly can prevent small issues from becoming more significant problems in the future. In emergencies, such as burst pipes or broken furnaces, ensure you have reliable and responsive contacts who can provide prompt assistance. As a trusted property management partner, Nest DC offers in-house maintenance services, which can save owners a considerable amount of money by avoiding excessive use of outside vendors and hourly costs.
Conclusion
Self-managing a rental property requires dedication, knowledge, and resources. While self-management has benefits, it is essential to understand the risks involved and be prepared to handle maintenance issues and unexpected expenses. Consider partnering with a trusted property management company to get your time back, leverage their expertise, and streamline the management process, ensuring a successful and hassle-free experience for you and your tenants.
For more happy home content, we suggest checking out our blog on Fair Housing in DC.
