Today we’re talking about the benefits of working with a professional property management company. I have long maintained that you will make more money by hiring the right property manager, but some people think they can save money by doing it themselves. That may be true if you’re able to rent the property right away after only one or two showings and you’re fortunate enough to get a great tenant who pays rent on time every month. You’ll also need to have zero maintenance calls on the property and your tenant will need to care for the home as if it was their own and leave it in better condition than when they moved in. If nothing ever goes wrong, doing your own property management might be okay.
Better Tenant Placement
After having been in the property management business for 25 years, we know that the above scenario is nowhere near the norm. According to one study, a professional property manager can get your property rented an average of 40 percent faster than the DIY landlord. This is due to the extensive marketing networks property managers can access. Working with a professional, you’re also likely to get more rent per month and better quality tenants. So, if you charge $1,500 in rent, a good property manager can bring in an extra $1,000 in rental income every year.
You also must consider that it can take an average of eight showings to find a tenant. That’s about 13 hours of your time plus the cost. There are resources required for background checks, credit checks, and then you’ll have to pay an attorney to draw up a lease and keep you protected
Finding a tenant is just the beginning. You will still need to collect rent every month, deposit the money, take maintenance calls all day and night and have trustworthy vendors who can make timely repairs. You’ll want to inspect the property regularly and enforce the lease terms when your tenant violates them.
Most people underestimate how much time and energy goes into managing a property. It’s a lot more than placing an ad on Craigslist and collecting a check every month. Perhaps the biggest advantage of all is that a property manager is a professional negotiator and problem solver. It’s sometimes like walking a delicate tightrope when you want to retain a good relationship with your tenant, who is your source of income, while at the same time taking care of the needs of your property.
If you’re weighing the pros and cons of professional management versus doing it yourself, remember that the potential cost of failure is significantly greater than saving a few hundred dollars.
Please don’t hesitate to contact us at Sarasota Property Management & Leasing if you have any questions or need any help.