Today we are talking about how much property management costs. I can’t quote you specific prices for the area because it’s against the law (prevents price fixing) and also because we are members of the National Association of Residential Property Managers (NARPM), and it’s against the code of ethics. There are certain things you do want to talk to a property management about before you sign a contract to ensure you are getting all the services you need.
Costs are typically based on the property, especially where it’s located and what type of property it is. There will be different prices for a single family unit, a multiplex or a building. Most fees are a flat fee or a percentage of your rent. When you pay a percentage, the property manager has a huge incentive to do a good job. The success of your property is financially tied to the success of your property manager. If your property is vacant, your property manager is going to be motivated to get it rented with a good tenant because they can’t make any money until your property makes money.
Work volume also plays into price. When volume is high, it might be hard to keep up with all the work. That’s where a property manager provides excellent service for the price. Property managers stay on top of all the work that is needed and they also know the laws and regulations associated with your property and your tenants.
You need to think about your own personality too. If you are laid back and you know you are likely to let a tenant take over, giving you no control, or if you are someone who doesn’t like to say “no,” you need the services of a property manager so you don’t lose money on a bad tenant. In many cases over the long run, not having a property manager is more expensive than having one.
You pay for around the clock service with your property management fees. Tenants need someone available to talk to 24/7. How much time do you have to take calls from tenants and to oversee repairs and maintenance work? Managing property is also stressful. If you are looking at time versus money, you also have to look at the cost of stress in your life. Property managers have procedures and policies in place, they know how to handle everything that needs to be done and they take the stress away from you while keeping your property well maintained.
All of these things should tell you that when you hire a property manager, you’re getting good service in exchange for your fees. We always have clients who are happy to hand over the keys to their rental property and take a big deep breath.
If you have any questions, please contact us at Trio Property Management.