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While renting out your second home may be financially advantageous, it may not initially appear to be the easy moneymaker you had in mind when you first bought the property. However, with time and experience you will find that this is not the overwhelming task it seemed in the beginning.

If saving money is of key importance, you will probably want to manage your rental property yourself. If you live nearby, and you have an established network of well-trusted maintenance and cleaning people, or have the time and talents to do the work yourself, this may be a good choice. Make a list of all the tasks you will be responsible for, both routine and unexpected, and then jot down how you will handle each of these responsibilities.

From finding the renter, to solving any problems that occur while they are there, to getting the place ready for the next renter, you need to have a plan in place. With experience you will learn what is missing from your list, and will be able to have a contingency plan for the next time.

Technology has made certain aspects of renting easier. If you establish a website for your home, potential renters can explore it online and contact you if they are interested. If the website includes details as to cost, number of bedrooms and bathrooms and availability, a lot of the prescreening can be done for you.

What technology cannot help you with are all the little things that can go wrong, and need prompt attention. If your repairman is out of town when you have an emergency, or your housecleaner quits in the middle of the high season, you simply must find a way of getting the problems solved. Going without heat in the middle of winter for a night when you are at home may be an unpleasant reality; a tenant going without heat in the middle of winter when they are paying good money for a rental is simply unacceptable.

By hiring a property manager, someone else, with extensive experience and contacts, becomes responsible for dealing with all of the crises. This is especially important if you do not live nearby. The property manager will receive the phone calls from potential renters, as well as from current renters when something goes wrong. You are personally never involved in dealing with the renters, and the only phone calls you may receive will be from the property manager.

With the property manager's experience in the rental market, he can help you determine an appropriate price, recommend changes or additions that you need to make to the property, and suggest items you should have available. Not only will this leave you with happy tenants who will refer their friends, but it may also help you avoid potential lawsuits from unrecognized dangerous situations.

The first and foremost disadvantage to having a property manager is the cost. Shopping around may help you find a better rate, but if this savings comes at the cost of the quality of the property manager, this may prove to be very shortsighted. Ask for references, and collect as much information about a potential property manager as possible.

Question a potential property manager extensively. How much experience does he have? How many properties does he manage? What type of occupancy level is there in the units he manages? Does he have larger corporate customers whose needs will come first? Who does he use for repair and maintenance? What type of backup system does he have?

Whether you rent out your home yourself, or use a property manager, there are a lot of issues that must be dealt with. With a little experience, what may seem initially to be a major project can be transformed into just another routine task to be managed.
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Learn more about this author, Frances Simon.
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