Is the Cost of a Property Manager Worth It?

What’s the most challenging thing about owning rental property?

Ask any of the 11 million individual landlords in the U.S. and you won’t hear the end of it. From dealing with bad tenants to doing property taxes, being a landlord isn’t as rosy as it sounds.

The good news is landlords don’t have to deal with these problems on the daily. You can take a hands-off approach by hiring a property manager – at a fee, of course.

However, this begs the question: is the cost of a property manager worth it? If you’re considering getting professional help, read on to learn more about the benefits that await you.

But first off …

How Much Does a Property Manager Cost?

On average, property managers charge anywhere from 8 to 12 percent of the monthly rental collection.

There are a number of factors that determine how much a property manager can charge a client. These include location, type and size of the property, and range of services offered.

If you only want help with rent collection and property maintenance, for example, you will pay less than if you wanted a full-service package. Click here to learn about the various services you can get.

Now that you have an idea of how much you’ll pay, let’s look at the benefits.

Rental Property Marketing

Every landlord dreams of having a rental property that’s occupied throughout. That’s how you’ll maximize your return on investment.

However, it’s not easy to maintain high occupancy rates, especially if you own a multi-unit establishment and you’re self-managing it. A property manager can help keep the occupancy rate high, though.

This professional will use their property marketing knowledge to advertise your rentals and attract tenants, ensuring vacant units don’t stay unoccupied for long.

A property manager will also help reduce tenant turnover by ensuring prompt resolution of tenant complaints. This means your tenants won’t vacate because of poor tenant-landlord relations.

Tenant Screening

Tenants aren’t created equal. While some will use your property responsibly and pay rent on time, others will be a constant source of headaches for you.

The last thing you want is a tenant who is always late with rent payments and causing disturbances to neighbors. Some tenants even engage in criminal activity, something which can necessitate police execution of a search warrant.

One of the biggest benefits of hiring a property manager is they will conduct tenant screenings. This increases your chances of getting the best tenants.

Minimize Legal Issues

Landlords have rights, but so do tenants. Unfortunately, landlord-tenant conflicts are common. Sometimes these conflicts escalate to court.

Whether it’s a tenant suing for discrimination or wrongful eviction or whatever reason, or you’re suing for unpaid rent or extensive property damage, this isn’t how you want to be spending your time and money.

But with a property manager, you will minimize your exposure to legal issues. They have the expertise to prevent and resolve tenant disputes amicably.

The Cost of a Property Manager Shouldn’t Put You Off

You’ve invested a lot of money into your rental property. Perhaps you’re struggling to keep up with the mortgage payments. So, it’s understandable that you’re on the fence about paying someone to do something you can do.

However, as we’ve demonstrated, the cost of a property manager is a drop in the ocean compared to what you’ll gain. Browse our blog to learn more informative articles.