6 Ways A Property Manager Helps Property Owners Save Money
Post Date: June 2013
Busy real estate investors already have enough on their plates without having to worry over the best way to handle their investments. Using the services of a property manager is an excellent solution to this situation. That way, they can maximize the return on investment while focusing on what they do best. It is not an easy job being a landlord. Marketing and maintaining the property while dealing with tenants takes a lot of time away from other productive activities. A professional property manager can do all these things, while saving time and money that can be used elsewhere.
Here are six absolute ways the right Property Management service can help save time and money, while at the same time helping property owners get the most benefit from ROI.
1. Rental Pricing
A Property Management company has the advantage of understanding rental prices. They know the real value of the property and the rental amount tenants are willing to pay for each unit. Because of this, they are able to maximize rent and get the most from the property.
2. Local Market Knowledge
Experienced Property Management services understand the market, and they also know where to advertise the property they manage and how to show it for greatest appeal. Since managing properties is their business, not a sideline, they are typically available to show properties as soon as they become available. What this means to the property owner is that the property is earning on a consistent basis with little time in between tenants. The average savings per unit realized by this service is typically $50 per month which translates to $600 per year.
3. Maximize Occupancy
A good Property Manager will minimize the number of days a property is empty. While it can take as much as 60 days or more for the average owner to fill a vacancy, with a Property Management service that time is reduced to less than 30 days on average. If the property in question rents for $1,500 per month, it is not difficult to see that the savings here is $1,500 with a professional handling the property.
4. Advertising
A Property Management company also saves owners on advertising as well. The reason for this is that these services generally get discounted rates when they advertise with newspapers and websites because they do large volumes of business with them. Over a year’s time, this can generate a minimum savings of $150 per year versus an owner doing their own advertising.
5. Maintenance & Repairs
Another advantage owners have when hiring the services of a Property Management company is in the area of maintenance and repairs. Generally speaking, Property Management companies get discounts from maintenance and repair vendors because of the large number of properties they manage. It is possible to receive as much as 30% discount over the normal cost which is passed on to owners. The average cost for maintenance and repairs for a single family home over a year is around $1,200, but this is reduced by about $360 when figuring in a 30% discount.
6. Finding The Right Tenants
One of the most important reasons for using a Property Manager is maintaining quality tenant occupancy. They do this by utilizing screening techniques that help them weed out undesirable renters. As a result of the screening process, they are generally able to ensure an eviction rate that is less than 1%. Those individuals who know they will not be able to pass this thorough screening process are more likely to rent from owners who manage their own property. They are very adept at convincing owners that they are worthy tenants even though they are unable to provide references, ID, or proof of credit worthiness. Once they do obtain access to properties, they often cause a minimum of $1,500 in damages, must be evicted at a cost of somewhere around $1,000, and the owner typically loses a minimum of a month’s rental at about $1,500. Add to this the time required to affect repairs to the property and it is easy to see how the thorough screening process offered by Property Management can save owners at least $4,000 each year.
Many property owners fail to consider the true cost of managing their own properties. They focus instead on the cost of hiring experienced professionals. This oversight can be very expensive and typically costs more in the long run than the fees involved with professional services. Using the average estimates stated above, the savings involved for just one rental unit can add up to more than $7,450 over a year’s time. Since the average cost of Property Management on a yearly basis is about $1,200, it is clear that the total savings can actually be as much as $6,250. That is money that can remain in the pockets of property owners.
On top of all this, there are other savings to consider as well. With a Property Management service on board, there is no need for property owners to take time out of their busy days to visit the property. In addition to that, they are able to contact those managing their properties via email or over the phone. The management services responds to requests from tenants, and only contact the owner when the need arises. As a general rule, only a few minutes now and then is all that is required to attend to details that can only be handled by the owner.
With all of this in mind, it makes a great deal of sense for owners of investment property to hire reliable professionals to deal with all the details of managing their properties. The savings mounts up even when there are very few properties to manage, but investors with several already understand the many benefits offered by Property Management. Finding the right service provider will help maintain property value as well as generate maximum income benefits as well.
Managing property requires that there is someone available all the time to take care of tenant concerns when they arise. Some property owners are able to take on that responsibility for themselves, but others are not willing to invest all their time into this full time job. This is why most retain the services of well trained and equipped services to provide the full time presence and support needed to handle the expectations of tenants. This is particularly beneficial for those investors who are not residents of the cities in which their properties exist.
The right Property Management company can ease the many concerns of real estate investors, regardless their locations. These companies reduce owner workload and ensure that all landlord tenant laws are abided by. This enhances return on investment while providing great service for tenants as well.
Source: PropertyManagementDirect.com
Busy real estate investors already have enough on their plates without having to worry over the best way to handle their investments. Using the services of a property manager is an excellent solution to this situation. That way, they can maximize the return on investment while focusing on what they do best. It is not an easy job being a landlord. Marketing and maintaining the property while dealing with tenants takes a lot of time away from other productive activities. A professional property manager can do all these things, while saving time and money that can be used elsewhere.
1. Rental Pricing
A Property Management company has the advantage of understanding rental prices. They know the real value of the property and the rental amount tenants are willing to pay for each unit. Because of this, they are able to maximize rent and get the most from the property.
2. Local Market Knowledge
Experienced Property Management services understand the market, and they also know where to advertise the property they manage and how to show it for greatest appeal. Since managing properties is their business, not a sideline, they are typically available to show properties as soon as they become available. What this means to the property owner is that the property is earning on a consistent basis with little time in between tenants. The average savings per unit realized by this service is typically $50 per month which translates to $600 per year.
3. Maximize Occupancy
A good Property Manager will minimize the number of days a property is empty. While it can take as much as 60 days or more for the average owner to fill a vacancy, with a Property Management service that time is reduced to less than 30 days on average. If the property in question rents for $1,500 per month, it is not difficult to see that the savings here is $1,500 with a professional handling the property.
4. Advertising
A Property Management company also saves owners on advertising as well. The reason for this is that these services generally get discounted rates when they advertise with newspapers and websites because they do large volumes of business with them. Over a year’s time, this can generate a minimum savings of $150 per year versus an owner doing their own advertising.
5. Maintenance & Repairs
Another advantage owners have when hiring the services of a Property Management company is in the area of maintenance and repairs. Generally speaking, Property Management companies get discounts from maintenance and repair vendors because of the large number of properties they manage. It is possible to receive as much as 30% discount over the normal cost which is passed on to owners. The average cost for maintenance and repairs for a single family home over a year is around $1,200, but this is reduced by about $360 when figuring in a 30% discount.
6. Finding The Right Tenants
One of the most important reasons for using a Property Manager is maintaining quality tenant occupancy. They do this by utilizing screening techniques that help them weed out undesirable renters. As a result of the screening process, they are generally able to ensure an eviction rate that is less than 1%. Those individuals who know they will not be able to pass this thorough screening process are more likely to rent from owners who manage their own property. They are very adept at convincing owners that they are worthy tenants even though they are unable to provide references, ID, or proof of credit worthiness. Once they do obtain access to properties, they often cause a minimum of $1,500 in damages, must be evicted at a cost of somewhere around $1,000, and the owner typically loses a minimum of a month’s rental at about $1,500. Add to this the time required to affect repairs to the property and it is easy to see how the thorough screening process offered by Property Management can save owners at least $4,000 each year.
Many property owners fail to consider the true cost of managing their own properties. They focus instead on the cost of hiring experienced professionals. This oversight can be very expensive and typically costs more in the long run than the fees involved with professional services. Using the average estimates stated above, the savings involved for just one rental unit can add up to more than $7,450 over a year’s time. Since the average cost of Property Management on a yearly basis is about $1,200, it is clear that the total savings can actually be as much as $6,250. That is money that can remain in the pockets of property owners.
On top of all this, there are other savings to consider as well. With a Property Management service on board, there is no need for property owners to take time out of their busy days to visit the property. In addition to that, they are able to contact those managing their properties via email or over the phone. The management services responds to requests from tenants, and only contact the owner when the need arises. As a general rule, only a few minutes now and then is all that is required to attend to details that can only be handled by the owner.
With all of this in mind, it makes a great deal of sense for owners of investment property to hire reliable professionals to deal with all the details of managing their properties. The savings mounts up even when there are very few properties to manage, but investors with several already understand the many benefits offered by Property Management. Finding the right service provider will help maintain property value as well as generate maximum income benefits as well.
Managing property requires that there is someone available all the time to take care of tenant concerns when they arise. Some property owners are able to take on that responsibility for themselves, but others are not willing to invest all their time into this full time job. This is why most retain the services of well trained and equipped services to provide the full time presence and support needed to handle the expectations of tenants. This is particularly beneficial for those investors who are not residents of the cities in which their properties exist.
The right Property Management company can ease the many concerns of real estate investors, regardless their locations. These companies reduce owner workload and ensure that all landlord tenant laws are abided by. This enhances return on investment while providing great service for tenants as well.
Source: PropertyManagementDirect.com
DISCLAIMER: This blog has been curated from an
alternate source and is designed for informational purposes to highlight the
commercial real estate market. It solely represents the opinion of the specific
blogger and does not necessarily represent the opinion of Pacific Coast
Commercial.
www.PacificCoastCommercial.com
www.PacificCoastCommercial.com
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