Residential Property Management – The Cost Savings
One of the greatest values of a residential property management company is its ability to save money for the investor. Managing the day to day activities of residential real estate can be far more time consuming for investors than they would have initially imagined. Between collecting rent, providing maintenance for the property and handling incidents such as landscape maintenance, rental agreements and locating qualified tenants, the costs add up and consequentially affect the overall savings achieved. By working with a professional residential property management firm, an investor can reap even more profitability with this low cost investment.
The Cost of a Property Manager
As an investor begins to realize the time spent managing a property is far more than they anticipated, they often resist looking for a property manager based on the assumption it will cost too much. However, the average cost of a good property manager is typically around 6% to 10% of the monthly rent fee. This minimal cost will save an investor the hassle and headaches associated with minor maintenance calls as well as bookkeeping work.
A residential property management firm typically has contractor and vendor information readily available in the event of a service issue at the property. These contacts save the time and frustration an investor would have experienced with obtaining quotes and seeking qualified service providers. A residential property manager is also more likely to be experienced with the price of repairs and can ensure the right price is being charged for the work provided. This is invaluable expertise, especially when it comes to emerging repairs.
Saving Money You Did not Know You Were Spending
An investor is often surprised to realize money they have lost by not being able to follow up on issues in a timely manner. For example, tracking rental payments is difficult enough, let alone billing out for late charges. Maintenance issues that are not in compliance may result in a local government fine, which can include simple things such as the law being maintained or snow removal. These are all liabilities and time consuming tasks that can cost an investor. With the help of a residential property management company, an investor can tie themselves of these risks with just a small expenditure that will maximize the benefit of their property investment.