Your property management cost will vary from company to company, but it’s generally pretty consistent across the board. Today, we’re talking about how you can evaluate the value of a property management company.
Rental Property Management Operations
Nearly all companies will charge a leasing fee, a management fee, or a combination of both fees. There will also be additional costs for things that go beyond the general scope of a service package.
Remember that a property management company is a process-oriented business. Processes and procedures are in place to ensure your properties are maximizing revenue and minimizing costs. The quality of these processes is crucial to understanding the value it’s providing. Look at how a company operates and get to know their online reputation. These will tell you more about value than the amount they charge every month.
Property Management Rates and Value
Things that impact the value of your property include tenant damage, vacant properties that aren’t being leased, and rents that are late or uncollected. These costs add up in a hurry. Thousands of dollars of damage are done every year in rental properties across the country. If you have a property management company that understands what it takes to minimize the costs and damages, it will save you money and quickly bring your management costs to zero.
In addition to saving you money, a good management company will maximize rents and do quick marketing to get a quality tenant in place who will pay on time and take good care of your property.
So, you’re not really interested in looking at what a company’s fees and costs are. While that’s important, they are pretty consistent. Instead, you need to understand what kind of value that company provides, and how it impacts your portfolio or ROI.
If you need help understanding property management rates, or you’d like to talk to us about our rental property management services and fees, please don’t hesitate to contact us at Midwest Property Resources.