Easy Property Management

Are Property Management Fees Worth It?

Do you view yourself as a business owner? If you are a landlord or rental property owner in the Phoenix area you might have purchased your properties as an investment that brings in extra income. You may have never thought of yourself as a business owner, yet, that is what you are. Therefore, you should view your properties as a business and rely on the same resources as other professionals.

For example, there are administrative professionals, property managers, and maintenance people who know how to do things faster, better, and in a way that will be more cost effective. These qualities are all things you can find in an effective property management firm. Of course, it might seem counter intuitive to hire a property management company when you are running the rentals as a business; wouldn't it make more sense to retain all of the profits by going it on your own?

In short, by hiring a property management company with a broad knowledge of the field and extensive experience you can increase profits through lower vacancy rates. Property management companies can provide superior customer service given that there are very few landlords who can realistically handle it all on their own. A property management provider can market rentals, show them to pre-screened candidates, handle all of the official paperwork (e.g., leases), and then deal directly with tenants whenever they require services of any kind thereafter.

How a Property Management Company is Able to Outperform an Individual

Let's just consider what one rental requires from you:
  • You have to market the property in such a way that you get the ideal tenants.
  • You have to take calls and emails about the property, respond, and then follow up with showings.
  • You have to drive to and from showings, which can take a considerable amount of time.
  • You have to do the "due diligence" on any potential renter by doing background, credit, eviction, and arrest checks.
  • You need to put together the documentation for the renter, including the lease and any addendums, a handbook if needed, and get copies of keys.
  • You then need to provide that tenant with the services required in a timely and pleasant manner.
  • Finally, when a tenant moves there is a large list of additional services and steps needed to move them out, refund their deposit, and get the rental filled again.

If you convert that list into billable hours, try to estimate how much money you spent in getting that vacancy filled and making the tenant happy. And keep in mind, it is your job to KEEP that tenant happy because the cost of vacancies is so detrimental to your bottom line.

For all of these tasks, a skilled property management group can step in and save the day. Yes, they will have fees, but their goal is to keep your properties occupied with the ideal tenants. They do the heavy lifting, including the ugliest issues like the eviction process, while you sit back and accrue profits.

The good news is that you can simply integrate the fees into your budget and work with the property management firm to craft a solution that fits into your plan. Whether you want only leasing support or the entire array of services, it is rare for a business professional to regret aligning themselves with a property management provider for the simple fact that every action completed is done so to ensure the success of the rental property, and surely that is worth it!

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