It’s easy to become preoccupied with the professional property management fee when you’re trying to decide whether you want to hire a manager or be a DIY landlord. While paying between eight and 10 percent of your monthly rental income to someone else might seem unnecessary, the services, resources, and expertise you get in exchange for that fee are extremely valuable. Protecting your time and avoiding costly and potentially litigious mistakes makes a property management fee worth paying.
Vacancies are expensive for landlords. Statistics show that landlords spend an average of 60 days trying to get a property rented. Property managers can do that in 30 days or fewer. So, you’re basically cutting your vacancy time in half by turning the job over to a property manager. That saves you money and helps you avoid long vacancies.
You’ll lose a lot of money chasing down late rent or filing for eviction. As a landlord, it can be frustrating when rent doesn’t come in on time, but you’ll probably hesitate before going to court to file an eviction, especially if you aren’t sure of the process. When you have a property manager to take care of this for you, you’ll benefit from their proven procedures and their knowledge. An eviction that drags on for months or has to start over because a mistake was made will be expensive. Property managers will ensure your rent is paid on time and your tenants are held accountable if it’s late.
Avoiding Professional Tenants
Professional tenants will seek out properties that are managed by individual landlords instead of management companies. That’s because they know it’s easier to get away with more. They understand the system and they will find a way to prey upon your lack of experience. Professional tenants will turn things around and accuse you of just about anything in order to avoid paying rent or to stay in your property a little longer. Property managers understand this, and they are careful to document everything with photos, videos, and written descriptions. They will recognize a professional tenant during the screening process, and keep them away from your home.
Even with perfect tenants in place, things like maintenance and repairs can cause headaches for DIY landlords. If something breaks at the property, you might think it’s easy and cheap to send your brother or a friend over to fix it. However, that person probably does not have liability coverage, and that leaves you exposed to potential lawsuits. Property managers work with licensed and insured contractors who guarantee their work and offer competitive rates.
If you have any questions about professional property management and why you fee is worth the money, contact Alarca Property Management.