A lot of the owners and investors we talk to acknowledge the benefits of hiring a professional property management company but hesitate to do so because they’re concerned about the cost. We can understand that; every dollar counts when you have a rental home. However, we’d like you to consider the fact that self-management is often more expensive than professional management. We can help you earn more and spend less on your investment with our expertise, tools, and resources. Before you decide to manage your own property, think about what it’s really costing you.
Leasing Costs: Vacancy and Tenant Placement
A professional property manager can rent your property out faster to a better tenant and probably for more money. Individual landlords may do a fine job finding and placing a tenant. But, how long does it take to market your home, schedule showings, walk the applicant through the process, and screen the tenant? We have nearly automated the entire process because of the software and technology that allows us to blast your listing out to dozens of rental websites in minutes. We use an innovative showing process, our applications are online, and we can conduct nationwide eviction and criminal background checks instantaneously.
When it comes to pricing your home correctly, we know the market. We have access to data that’s more reliable than what you’ll find on Zillow or Craigslist. All of this leads to a faster leasing process, which means higher cash flow and more long term ROI for you. Professional managers make a difference that directly impacts your bottom line.
Saving on Maintenance with Professional Management
Having your tenants call you in the middle of the night with a water leak is inconvenient and unpleasant. It’s also expensive. If you don’t have a preferred plumber who is willing to go to the property right away, you’re going to waste a lot of time finding a good vendor. You’ll probably pay full price, too.
Property managers often have their own in-house maintenance technicians, and we also have relationships with preferred vendors who can respond immediately, mitigate additional damage, and provide us with preferred pricing rates based on the volume of work we provide them. Those savings and our ability to respond quickly will make a potentially expensive repair manageable. You can also count on quality work from vendors who are licensed and insured, limiting your risk and liability.
Let’s not forget tenant retention. If you’re scrambling to find a vendor who can take care of a repair issue at your rental home, your tenants will grow more frustrated as the days drag on and the work isn’t completed. They are unlikely to renew their lease when maintenance isn’t a priority, and then you’ll face vacancy and turnover costs.
Avoiding Common Costly Errors
It’s easy to make mistakes, even for experienced landlords. However, when those mistakes are avoidable and they cost you money, you’re really putting yourself at a disadvantage. Fair housing laws are easy to misinterpret, and if you try to charge a pet fee for a service animal, you can find yourself facing a $10,000 fine and a fair housing complaint. Not returning your tenant’s security deposit in a timely manner will cost you three times the amount of that deposit. Without a professional manager taking care of things for you, it’s easy to make a simple mistake that can lead to big consequences.
It’s cheaper to hire a management company. We want to help you have a better investment experience and earn more on your rental property. Hiring a professional property manager doesn’t have to be expensive and the cost of management services can be written off at tax time. Contact us at New Bridge Management so we can tell you more about the cost effectiveness of professional property management.