So, you know all the ins and outs of what a property management company does. Are you interested in hiring one yourself? You may be due to all the convenient ways the property is handled. This reduces a great amount of stress. But, what is the price? Let’s go over that together.
Should You Hire A Property Manager?
Residential Leasing & Management, a residential property management in Houston advises that there are several factors that you should take into account when considering if you want to hire a property manager or not. So, before we get into the prices of a property manager lets go over some important aspects to help decide if you would benefit from the assistance that they provide.
Are You Knowledgeable in Managing Property?
If you have any experience managing a property you may not need to hire a property manager. Now, do not count a property management company out just yet. If you have had successful experience in managing a property is a better question.
Here are some signs you may need help with experience:
- You have very little knowledge about managing a property.
- You are not familiar with tenant laws and rights.
- Are you knowledgeable about fixing things around a home? Finding an issue and solving it accurately to please the tenant.
These are all great places to evaluate yourself. If you feel you may be lacking in any of those experience areas of management experience, you may need to hire a property manager.
Are You Prepared To Invest Time?
If you do not plan on hiring a property manager then you must be prepared to invest time in the property and the tenant. You see, a property manager deals with a lot of things when it comes to handling the property and all the needs that come along with any tenant. It takes a lot of time to make sure everything is in place. Often times things change quickly too.
If you are planning on managing the property yourself here are some things that you will need to invest time in:
- Collecting Rent Payments
- Making Sure the Property is Ready For Rent
- Handling Applications and any Fees Associated.
- Placing Any Ads to get the Property Rented.
- Handling All the Landscape.
- Be Available to Handle Any Home Emergencies that a Tenant May Happen to have. This could mean an overflowing toilet in the middle of the night, a gas leak, an air conditioner or heating problem, and much more.
Being The Landlord
This one sounds simple enough, but it may be a task. Do you have any issues handling your tenants? If so, you may need to invest in a property manager for yourself! Sometimes tenants can be difficult to deal with and it can be a very stressful job. When considering a property manager versus doing it yourself, ask, am I a people person? Can I handle the stress of tenant responsibility?
If you answered no to any of those questions, you may want to consider handing all that work over to a property management company.
Let’s Talk Price
Now that we have gone for some reasons that it may be good to have a property manager and whether you would benefit paying for one, let’s look at the cost. They certainly are not free but worth every dime when it comes to all the things you don’t have to deal with. Just make sure that it is all placed on your paperwork.
Most property managers are paid based on the percentage if what the price of the monthly payment for rent is. This ensures that they set a good amount of rent, get the property rented, and maintain a tenant to keep receiving a regular payment every month. Basically, they get paid for making sure you get paid.
There is more information on the different percentage rates and how they work at www.managemyproperty.com.
The More They Manage A Less Percentage
If you have more than one property that you will be needing managed, hire the same property manager for the job. The more a property manager manages, the less in the percentage of the property. They will still be getting paid. It is more like a discount.
The Common Percentage Rate
The most common percentage rate for a property manager is about 4% to 8% but this can be even higher. For simple math, if your property was rented out for $700 then the property manager would get paid on average at 7%, they would receive $49 while the rest goes to you.
The more the property is worth, the more they will get paid. Some even get paid a bonus for finding a tenant.