Selecting the right rental property manager will actually save you money, and free up more of your valuable time.
Considering leasing your property? Here are some ways hiring the right team can save you money:
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Efficiency
- The most annoying, time-consuming hassles that landlords and investors deal with are considered routine for professional rental property managers.
- There are tax advantages to hiring a rental home manager, as described here.
- Increase in occupancy rates
- Aggressive marketing, qualified tenant databases, and established processes will reduce turnover time and increase income for your rental home
- Time = Money (Problems with your rental will consume both)
- How much time have you spent on the following?
- studying laws, ordinances, and regulations
- establishing and implementing programs
- chasing rent
- emails/calls to maintenance
- researching issues that you've never encountered
- How much time have you spent on the following?
- Evictions are expensive (Example: Assume $1200/month rent)
- Cost of eviction = $65
- Lost rent = $1,800 (month's rent x 1.5 months...typical eviction process)
- Unexpected turnover costs = varies
- Time spent filing eviction = varies
- Subsequent vacancy while finding new tenant
- Average rental property manager charges 10% of gross rent =$1440/year
- Network
- Preferred rates with vendors
- On call maintenance for emergencies
- Bulk discounts
- Access to Professional Service Agents (i.e. attorneys, CPAs, QI's; etc.)
- Reduce/Convey Liabilities
- Professional companies will have insurance coverage, such as Error and Omissions and/or General Liability policies that will cover unintentional mistakes and shield you from these issues.
- Contracts signed with vendors, contractors, and tenants will be with your management company, which will provide an additional level of protection.
Get to know all the management companies you interview and determine if their style supports your property. Not all management companies are good at managing rental homes. Check out their ratings on various sites, such as Zillow or Google and compare your options before making such an important decision.
