How much does rental property management cost?
The fees for property management can vary by company and region. Most property managers work off a commission system where they are paid a certain percentage of the total income collected. Some companies have separate fees for leasing, evictions, and other time consuming tasks which are common. But some companies have other types of fess like lease renewals fees, Section 8 fees, etc.
Why are some company’s property management services more expensive than others?
This comes down to the separate fees. A company with a significantly lower commission rate might be compensating by having separate fees the other company doesn’t. As an example XYZ Management may charge 9% on a duplex but EFG Management charges 5%. EFG charges fees for lease renewals, bill payment fee, and a flat fee per Section 8 tenant. Where as XYZ only has additional fees for new tenant leases.
What services are included in property management fees?
Typically tenant relations, bookkeeping,maintenance coordination, and showings are included. Note: Maintenance coordination does not typically include the cost of the labor. It’s coordinating with tenants, staff, and outside contractors that is included.
Why should I hire a property manager?
If there is a particular aspect of rental ownership that your dislike and it affects your ability to service your properties. If you find tenants are taking advantage of your kindness too often. Some investors find their properties are more successful when handed off to a competent manager.
What should I look for when interviewing property management companies?
When interviewing property management companies (and yes you should be interviewing them) you will want to ask about a few key topics: additional fees, philosophy on late rent, and their contractor network. It’s also important that your property manager understands ideas like return on cash, forced appreciation, 1031 exchanges, etc. This ensures the management company is looking beyond their scope of tasks and thinking of the investor’s side.
Why do rental management companies get a bad wrap?
Yes there are bad egg property management companies out there. Some are more interested in their bottom line than your own. Others tend to get so big they don’t have adequate staff to handle the portfolio. A ratio of 1 office staff per 130 units is a good ratio (assuming that person isn’t responsible for showings). But yet sometimes property management companies get a bad wrap because the manager and owner aren’t on the same page to begin with.
Investors should always be sure their manager knows anything the investor is expecting that will cause significant problems if not handled in a particular way. For example, during the interview process an investor doesn’t inquire about a company’s policy on delinquency. When a tenant is late by 3 days and a 5-day notice has not been issued the investor becomes upset and dissatisfied with management. The management companies standard policy is to issue 5-days no sooner than the 6th day of delinquency. The investor and manager were not on the same page here. Since the owner had adamant feelings about the delinquency he should have expressed these during the interview.
How has Kenosha property management changed in recent years?
Property management in Kenosha has changed in recent years because of the population growth. With more industrial and commercial interest in the area, the rental market of Kenosha has become more professional. Renters have increased expectations of efficiency and economy. The investing world is becoming increasing competitive in Kenosha and the right property manager can be a true ally.