Hiring an estate property management service can be an excellent solution for your growing real estate portfolio. However, managing your properties with so many responsibilities can be overwhelming. It’s common to max out at three or four properties. Even the most basic tasks can become a draining task when you are handling multiple properties. Whether you’re buying or selling, there are some crucial questions you should ask yourself before hiring an estate property management service.
Costs of hiring a property manager
When hiring an estate property management service, make sure you know the cost of leasing. Most property managers charge a fee for placing tenants, and this fee is generally around 25 percent of the monthly rent. Other fees include the costs of advertising, screening tenants, creating lease agreements, and move-in procedures. Make sure to negotiate the price as you want to avoid paying extra in these areas. However, you should be aware that a property manager may also charge an additional fee for renewing leases.
Reputational benefits of hiring a property manager
While it’s tempting to manage a property yourself, it’s also better to let a professional manage the affairs of your estate. This way, you can be confident that they will handle the properties with utmost care and professionalism. There are many reputational benefits of hiring an estate property manager. Firstly, the property manager knows the best ways and places to advertise vacancies. They also know how to find suitable tenants. Their manpower and resources will make this process easy and fast. They’ll do thorough checks on applicants before approving them. Additionally, they understand local rental laws and are conversant with property management laws.
Questions to ask a property manager
There are several questions to ask a property manager before signing up with them. One of these is the amount of experience they have. More experienced companies have more experience and ratings, which gives you more peace of mind that their services will be quality. In addition, a property manager’s number of staff should be proportional to their experience and the number of properties they manage. You should also ask the property manager how often they prepare financial review reports and what you should look for in the reports.
The fees for property management services vary widely, depending on the service offered. Some charge a 3% fee of the potential gross rent. It is also best to choose a property management company that allows a manager to handle a reasonable number of properties. In addition to managing a property, a company may also have full-time accounting and maintenance staff.
