Are You Self Managing Your Rental Property?
Considering taking the self-management route? If so, you’ll want to weigh the pros and cons to determine whether self-managing is a better option compared to hiring a management company.
While self-managing will save you some money, it will mean dealing with tenants, marketing your property, and adhering to landlord/tenant laws on your own. Also, hiring a property manager is often a smarter investment because they know the market and can help you get the maximum profit on your properties.
Pros and Cons of Self Managing
PROS
- Save money compared to hiring a property manager
- Full freedom when it comes to screening tenants
- Face-to-face relationships with your tenants
- Total control and responsibility when it comes to handling repairs and maintenance
CONS
- Must be available locally: You need to be accessible for maintenance and tenant issues.
- Marketing responsibilities: You’re responsible for filling vacancies without professional tools.
- Managing tenant issues: Handling late payments or evictions can be stressful.
- Legal compliance: You must understand Arizona’s landlord-tenant laws to avoid legal issues.
- Limited market knowledge: Without professional expertise, you may not maximize your profit.
- Multiple properties: Managing multiple tenants can be overwhelming.
Potential Risks of Self Managing Your Properties
There are some specific risks that come with managing a rental property – especially if you are managing it on your own. If you’re not well-versed in state tenant laws, you’re susceptible to making some costly mistakes.
Below, we’ve outlined some potential risks to consider when self-managing your rental properties:
Screening Tenants
One of you is to screen tenants to ensure they’re reliable. This means you are responsible for finding reliable, responsible tenants to lease your property to. You’ll have to check for credit reports, call their references, verify, and draft a lease that complies with Arizona’s Fair Housing Act.
Managing the Tenant-Landlord Relationship
Dealing with tenants is often easier said than done. Issues arise, people skip out on rent, and tenants may face eviction. Dealing with these issues can be stressful and expensive.
Adhering to Arizona’s Fair Housing Laws
The Arizona Fair Housing Act prohibits discrimination in renting based on race, sex, disability, or other protected classes. You must understand these laws to avoid legal trouble during the tenant screening process.
Aggressive Breed Dogs
Owners may have rights to restrict certain dog breeds, but you must be cautious with service animals, which are protected by Arizona law.
Pool Liability
If your rental has a pool, you may be liable for injuries if it’s not maintained. Ensure you have liability insurance.
Handling Tenant Damages
You must distinguish between normal wear and tenant-caused damage to charge appropriately, per Arizona’s regulations.
Rental Insurance
Arizona requires rental insurance to cover potential injuries or damages. Without it, you risk out-of-pocket costs.
Evicting Tenants
Evictions in Arizona-specific procedures, including notice periods and court processes. This can be complex without legal expertise.
Read: How to Evict a Tenant in Arizona – Guide for Landlords
Understanding the Arizona Residential Landlord-Tenant Act
The Arizona Landlord-Tenant Act (Tenant Act) outlines landlord and tenant obligations in Arizona.
Updated in 2018, this act specifies what landlords and tenants can do before, during, and after a leasing agreement.
General Provisions
The aim of this chapter is “to simplify, clarify, modernize and revise the law governing the rental of dwelling units and the rights and obligations of landlord and tenant” and “to encourage landlord and tenant to maintain and improve the quality of housing”.
This section can be found on Page 4 of the Arizona Residential Landlord-Tenant Act.
Landlord Obligations
- Avoid discrimination and abuse
- Allow lease termination for safety issues (e.g., domestic violence)
- Not withholding security deposits without legal justification
- Maintain a safe, clean property
- Keep up with essential repairs (e.g., HVAC, plumbing)
- Provide alternatives if repairs aren’t feasible
Tenant Obligations
- Comply with health and safety codes
- Dispose of trash properly
- Avoid irreparable damage to the property
- Pay rent on time
- Prevent pest infestations
- Vacate on the agreed move-out date
- Allow access for maintenance
Read: Are Landlords or Tenants Responsible for Pest Control?
Remedies
- Rules for deposit disputes, evictions, and repair requests
- Tenant rights to recover possessions or manage their own repairs
Retaliatory Action
- Protections against landlord or tenant complaints
- Legal recourse through civil or federal courts if disputes escalate
Property Management Services
Learn more about Century 21 Northwest’s Property Management services.
