Successful real estate investors already know that hiring a good property management service is more like an asset than an expense. With so much to think about handling investment property, from maintaining down to getting the most ROI out of it, choosing the right property manager is indeed crucial. Aside from that, getting to know the property management metrics for your market is also one factor that needs close attention.
With this said, it’s beneficial for you to know your property management metrics in order to anticipate your increased return of investment and free up your valuable time so that you can focus on growing your real estate empire.
Get to know property management metrics for your market.
If you are an experienced or first-time property investor, finding the right fit in the market is one thing you must prioritize above else, given how fragmented the market is. The first thing you’ll want to do is go over multiple firms to get a good idea of fair market pricing.
Go over the fees with each of them. When picking the right property management company, take your time to grasp its pricing and weigh it according to your desired long-term investment goals. Basically, property management companies structure their fees in two main ways:
Percentage of Monthly Rent
Property management companies usually fix a monthly fee of 8% – 12% based on the monthly rent collected. For instance, if the rent on your home is $1,200 per month, the property management fee would be $120 based on an average fee of 10%.
Fixed Property Management Fee
Some property management companies offer a fixed fee structure instead of collecting a fee based on a month’s rent percentage. Usually, the fixed fee scales according to the property type, square footage, and particular property management services.
Now that you have already discovered the structure of how property management companies charge their fees, here are a few of the fees that you need to take note of:
- Initial set-up fees.
- Leasing fees.
- Management fees.
- Renewal fees.
These standard fees above play a large role in choosing your property management company. You need to note how much they charge, for this serves as your basis in knowing how the company works to keep your property in good condition and maximize income and value.
So what are the standard services a property management company offers? In finding a property management company, these are the types of services they provide:
- Screening potential tenants
- Tenant move in and out
- Drafting, signing, and renewing leases on behalf of property owners
- Rent collection
- Property maintenance, including arranging for necessary repairs to properties
- Provide accounting for property maintenance.
- Provide legal assistance for dispute or litigation
They say that time is money. While you can try to manage your rental property, tapping a property management company can take away the hefty tasks for you; thereby, saving you time. However, before choosing the perfect company, you must thoroughly study and ponder on how much money you want to shell out.
Isn’t it time that your property was managed like the investment it is? Contact Real Property Management Instant Equity today!
Click here for our Complete Guide to Property Management.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.