If you’re a landlord managing your own property in Jacksonville, FL, you might be avoiding professional property management because you think it’s too expensive. In fact, using a property manager can save you money. Taking care of the property on your own requires a lot of time and an understanding of all the local, state and federal laws pertaining to rental housing. It can result in costly mistakes and liability.
Finding a Tenant
Vacancy is one of your biggest expenses as a landlord. When your property is vacant and you’re looking for a tenant, you aren’t collecting any rental income and that adds up over time. A property manager will use marketing and advertising resources that can get you a qualified tenant in a lot less time. That means faster rental income for you, and less vacancy time between tenants.
Taking care of repairs and updates at a rental property is quite different from taking care of these things at your own home. You have to act quickly and you need to hire a reliable and experienced vendor who can understand and fix the problem. This can be a challenge when you are not the one living in the property and discovering the issues. Property management companies maintain a list of preferred vendors who are licensed, insured and reliable. They can also get more competitive pricing because of the volume of work they provide these vendors. As an individual landlord, your costs will be higher when you only have one or two properties needing regular repair work.
Property Management Investment
In addition to the fee you pay for a property manager to place a tenant in your property, you’ll also need to pay a monthly management fee, which is usually a percentage of the rent your property earns. It might seem like a cost that is better to be avoided, but you get a number of services in exchange for that fee. You also save money on things such as vacancies, maintenance and legal compliance issues. There’s also a benefit to the fee you pay: it’s tax deductible. You can write off the cost of your management fee as well as the amount you pay in maintenance. With the tax savings you get, professional property management practically pays for itself.
Property Management Value
To get the best value for your money, work with a company that focuses solely on property management. You don’t want to hire a sales agent who does management on the side. Look for a manager who belongs to the National Association of Residential Property Managers (NARPM). They have high ethical standards and share a number of tools and resources with their experienced property manager members.
Contact Collins Realty Services & Property Management if you have any questions about how professional management can save you money.