Whether you are a landlord or a residential real estate investor, your properties need to be managed. Of course you could handle all of these things yourself. That is assuming that you live a reasonable distance from your rental property and actually want to take on the responsibility. But, what if you live in another state? What if you don’t like dealing with the confrontation of a non-paying tenant?
What if you simply do not have the time, energy, or proclivity to want to handle all of these things? These are just some of the reasons why hiring a property manager might be a great choice for you and your residential rental properties.
Isn’t A Property Manager Expensive?
The first question that pops up when you’re thinking about hiring a property manager is, what’s the cost like? In actuality, hiring a property manager is not too expensive when you compare the amount of everyday and monthly tasks they handle for the property owner. Managing a property is not very hard in most cases, but it is often time consuming, especially when you are in-between tenants and looking for a new one or when there is a property issue
At Profere Property Management, a property manager charges a flat fee of 8% of the rent you charge. So for example, if you lease your property for RM2, 500 per month in rent, our property manager will only charge you 8% of that amount, which amounts to RM200 per month for their services. That 8% will not only ease your responsibilities as a property owner, it will also garner higher profits in the long run through effective tenant screening, house maintenance and upkeep.
What Services Does A Property Manager Typically Perform?
There are many things a property manager typically does for a landlord as part of the monthly fee that they collect. While this is not an all-encompassing list, it does provide you with a good idea of what you can expect the typical property manager to do for the fees they charge the homeowners.
● Find and screen new tenants
● Advertise your home vacancy
● Evict non-paying renters, if needed
● Collect rent payments and deposits
● Handle calls from potential and current tenants
● Schedule routine and emergency maintenance
● Coordinate with contractors and home warranty companies
● Conduct monthly or quarterly inspections
● Show the property to new renters
Property Managers Understand State and Local Law
Additionally, property managers well apt with knowledge regarding specific local, state, and federal laws that govern being a landlord such as accepting renters, removing non-paying tenants, application denials, which references to check, and other aspects of renting.
The law covers a host of specific details that you may not know. It is hard to keep up with all of the rules and law changes. Hiring a property manager absolves you of responsibility and puts it on the property manger’s shoulders.
Access to Credible Real Estate Agents & Databases
Property Managers have a wealth of history and knowledge about the residential real estate market in your area.
Not only does a property manager know the lay of the land in your specific town or neighbourhood, but they most likely are real estate agents as well. If they are real estate agents, they also have access to multiple listing services and databases, which provide realtors with a wealth of data about all homes that have been sold and/or rented in the area. Having access to these databases would also mean helping you determine the optimal rent rate. It is crucial to determine the right price and doing it requires knowledge of the local real estate market, data on similar units, and access to professional rental rate tools.
So, Is A Property Manager Worth The Fee?
Of course only you can truly answer if a property manager is worth their fee. Like most things in personal finance, the answer is that it depends. What do you want to do with your property? How involved do you want to be–or can you be? For many landlords, it makes sense to hire someone who can manage your property for you. But often it is simply a profit calculation you have to make and live with.