How a Property Management Team Can Actually Earn You Larger Profits

If you are focusing on the commission rate a firm charges, you may be overlooking all of the ways that a property management firm can actually save you money on your investment. A property management team is made up of several different professionals with an expertise in different areas of rental properties. Firms have marketing managers, real estate agents, real estate lawyers, technology experts and customer service representatives that handle all of the emergencies. The key to earning a profit as a landlord is charging competitive rents and keeping your current tenants happy. Here is a breakdown of how an expert property management team can earn you more than they cost:

Setting the Right Rental Price 

Chances are you are not an expert in rental price trends in the area where your investment property is located. What you might not know is that trends change on a regular basis, and only real estate professionals know how to do research to see how prices are fluctuating. Charging rents that are too high can translate into long periods of vacancy, which can cost you quite a bit of money. Charging rents that are too low will make you lose out on profits for periods of 6 months to a year. By hiring a professional management team, you can compare rental rates in the area and settle on a price that is fair and competitive.

Finding Long-term Tenants 

Every time you lose a tenant, you must pay to fill the vacancy. Marketing a property costs money. If you hire a team to match you the right tenants, you have peace of mind in knowing that the team’s goal is to find you a long-term tenant that plans to stay in your investment property for more than just a single lease term. The firm also takes time to review rental applications to determine which tenants are the most responsible. Firms will verify the information provided, and run every applicant’s information through a screening database to ensure they are financially responsible. Hiring a firm reduces your chances of choosing an irresponsible tenant who is late with rents or breaks the lease without any notice.

Inspections and Addressing Maintenance Issues

Do you have time to perform a monthly inspection? When you hire a full service property management team to manage your property, inspections are generally part of the package. While this may sound like an inconvenience to your tenants, if you have the right tenants this can be seen as more of a safeguard. The team will identify possible hazards and maintenance issues that need to be addressed immediately. By doing this, the team can actually save you money and arrange repairs before a minor problem turns into a major one.

As you can see, property management services are more than just an expense. If you are ready to be a hands-off landlord, now may be the time to meet with a management team to discuss your options. You should consider how much you will be paying out-of-pocket, how much time you will spend managing your property on your own and how much your time is worth before you make the final decision. If you can break even or still profit, hiring a professional team is probably the most practical choice.