Should you manage your rental properties in Pembroke Pines? This is a commonly asked question. On the one hand, there is the ever-present temptation of saving on a property manager’s fees. But on the other hand, are you prepared to take on the hassle of managing your rental property? You see, managing a rental property takes a lot of different skills, which may not seem evident at first. And to remain profitable, you must regularly perform many different maintenance tasks.
Many property owners believe nobody cares about their property as much as they do. And this can be the case sometimes. But it comes at a cost and takes up valuable time. Listing a property, placing ads. and taking phone calls to show properties are just the beginning. There are insistent calls for repairs, unruly tenants, rent collection, periodic inspections, evictions, and more, to consider too. So, as a future landlord, there is a long list of responsibilities to handle. Do you have the time to manage the property? Or does it make better sense to hire someone to manage it for you? Professional property management companies can take care of most chores but may not offer the perfect solution for you.
So, since there is no perfect solution, you must consider important issues before deciding. Most of the time, rental home repairs are not a serious matter. Leaky faucets, running toilets, and clogged garbage disposals are part and parcel of any rental property and are probably manageable. But it can be a whole different story when it comes to bigger issues like blown water heaters, broken appliances, leaking roofs, and damage from hurricanes. Being a landlord isn’t easy, especially if you live several hours away. Worse still, out-of-state.
Should You Manage Your Rental Properties? How Much Does Property Management Cost?
Property management fees in South Florida vary by location. The typical fee for a single-family house or small multifamily property is between 8 and 12% of the rent in a monthly fee. Additionally, there is a one-time placement fee each time the unit is rented. This placement fee varies between 50% of the first month’s rent and the entire first month’s rent. Some managers also charge a “renewal fee” each year.
The DIY option is always available if you have the basic skills and the time to manage your property. However, allowing a professional property management company to look after your property, frees up your time, allowing you to invest your time in other demanding and essential tasks relating to your property or other businesses. Also, letting professional property managers handle your property offers numerous benefits you stand to lose otherwise.
A good property manager is proactive and involved in every aspect of property management. They are patient when dealing with contractors or unruly tenants. And yet, are aggressive in hunting down the best deals for their customers. Quality property management is a balancing act at the best of times. And delivering top-rated solutions to happy customers is an ongoing process.
Let’s say a reputable and trusted property management company charges you $2,000 per year. But if the time saved helps you add one more property per year to your portfolio. If this nets you $6,000 in cash flow, then the savings are worth it.
Should You Manage Your Rental Properties? Are You Willing to Learn How to Become a Landlord?
Landlording skills are something people train for and acquire over time. Sure, they make mistakes along the way, but over time, they manage to get things done right by investing time and money. Despite this, errors are not uncommon, and some mistakes can prove to be overly expensive. So before deciding whether you can manage your properties yourself or hire a property manager, you need to answer one of the most important questions: can you invest the time to become a good landlord?
There are multiple resources to help people learn to become great landlords. You can talk to local landlords, read numerous well-written books and articles, and participate in real estate podcasts and landlord forums. But remember, like anything else, it will require time to get things right: the time you need to have available on your hands.
But not every property owner is interested in learning how to become a good landlord. Many simply do not have the multitude of skills or are happy “just owning”, their properties. And there is nothing wrong with that approach because property management is not everyone’s cup of tea. In this case, it makes sense to pay a good property management company and avoid losing hundreds of thousands of dollars on your investment properties.
Property Management Is A Full-time Job
Some investors think that by hiring a property management company, they will not need hands-on involvement with their property. The truth is that many property management companies are not everything they claim to be.
Since property management is not a highly specialized job, many managers are not experts in the field. Some property management companies are unable to rent units on time. Some do not follow the prescribed processes and fail at tenant screening and background checks. Landlords often complain that companies are not professional in communicating with the owner. Others are slow at having quality repairs completed on time and within budget. Some may even allow the tenant to let the property fall into disrepair. It is a well-known fact that poor or negligent property management can marginalize an investment by racking up huge legal bills and fees. So, if you do decide to hire a property manager to run your rentals, do your due diligence and find the best manager in your town.
Should You Manage Your Rental Properties? Or Use A Property Management Company.
Even after hiring a top-rated property management company, the job is not over. As an owner, you need oversight of the property manager to ensure they are doing their job and delivering against the property management contract. For larger companies with hundreds or even thousands of properties under management, your property is no different from any other. Contrary to claims, high-value customers take precedence and get preferential treatment. With a hundred vacancies to fill at any given time, yours included, they try to rent out the easiest ones first. There is no real incentive to get your property rented ahead of others. And this can result in longer-than-expected vacancies and cash flow disruptions. Or they may rent to less-than-ideal tenants in the rush to meet targets. And this may result in high tenant turnover costs and hassle.
On the other hand, large and professional property management companies run ongoing property marketing campaigns. As they are very targeted, they have a much wider reach for attracting tenants in their areas. There is no comparison between their hundreds of signs and ads targeting potential tenants and the handful you may put up. It is a fact that the marketing they run is what gets them hundreds of calls for rental properties and quicker rentals.
So yes, you can manage your properties and maximize your returns. But be prepared to make the mistakes that come with it. And most important, make sure you have the time it takes to become an effective and good property manager. Otherwise, you are better off leaving it to the pros, who can take away the hassle of property management and free you up to enjoy life’s precious moments.
How we can help?
Real Property Management Premier provides professional, trustworthy property management services, from tenant screening to leasing to maintenance to evictions. Whether you are an investor with multiple rental properties or have a single rental, we have the services and solutions to increase the bottom line of your Florida rental property. Follow our expert tips to increase the bottom line of your Florida rental property.
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