There are numerous property management companies in the industry today. All companies get their own charges and fees that you have to incur to contract their services. The truth is that the sole management companies that you should hire with are definitely the companies that are FREE. Property managers in orlando
I am aware everyone feels there is nothing that is “free” which is true generally speaking but not from every perspective. Once I label Free property management, What i’m stating is a company that provides added value to the properties it deals with. A value that would be unlikely to be reached by the owner managing the property themselves. Let’s examine the value of good real house management. Value can be expressed in many conditions such as equity, lower turnover, higher rents, lower maintenance costs and most importantly, time. Time is the main asset that is out there. Simply put if you possessed all the money or goods in the world but you had virtually no time to enjoy them, you don’t have much.
A large number of property owners have regular jobs, family obligations, and little time to take care of the property they own to maximum efficiency. A few of these owners work extended hours in an try out to “save” money by not hiring a property manager. After we look at this practice we will see that in most cases the exact property owner is actually losing money, and even more importantly losing time.
This saying “Time is money” will be a foundation of our analysis. Why don’t we say the property owner within our example is an employee at XYZ Corp and is paid 20 dollars an hour. A standard price for property management is somewhere around 10% of collected rent. Thus we will pretend this owner owns a two family rent house and each unit rents for $700. That means the cost for professional management on this property will be in the location of $140 a month (10% of 700= $70 per unit, times 2 = $140). That equals 7 hours of income for the owner. So if managing this property takes additional time than 7 hours monthly, or the management of the house interferes with the work of the master than the owner would really be better off with a professional rental property supervisor.
The time analysis shows that there isn’t a lot of money to be saved by taking care of the property yourself, particularly if you could use your time towards work you are covered. However, the time analysis would not show the complete benefits associated with property management. If managing property was easy and estimated there is no property management companies. We all know that real property repairs can pop up seemingly out of no place and late tenants can turn into evictions at any time. The main cost occurs during these times, when you really need to evict tenants, repair the property, advertise and attract new tenants, and lease the unit to get nightly rental income again. These are the days when property owners with other obligations really lose time and money. The truth is if a property owner is unable to manage the issues successfully and loses just one month of rental income, they would have lost enough money to pay for near a complete yr of professional property management in many cases!
Very good property management will allow you more time to produce income or spend time with friends and family. More time is a good enough reason to hire a property manager but that is not the end of the advantages. In addition efficient management should be able to move savings on to the owner for routine fixes and maintenance through network contractors and vendors. That they will be capable to make smooth transitions from opportunities to new qualified professional tenants and maximize Cashflow. Therefore I will conclude by urging property owners with other obligations to highly consider professional management, because sometimes the price tag on trying to cut costs is merely too high.