If you’re a landlord who has been thinking about hiring professional property management in Pompano Beach, but you’re worried about the cost – it’s time to change the way you think. When you choose the right company, property management services pay for themselves. We’ll describe some of the fees you can expect, and explain why investing in professional management is one of the best ways to earn more money on your rental property.
Monthly Management Fees
The most common property management fee is the monthly cost of operating your rental property. You’ll be charged either a flat monthly rate or a percentage of the rent that’s collected. This covers the property manager’s time, expertise, and documentation for things such as rent collection, accounting and bookkeeping, responding to tenant inquiries, managing vendors or your HOA, pricing your home, keeping up with laws and regulations, and ensuring that the tenant is held accountable and the lease terms are enforced. Most property managers will deduct this fee before paying you your rent, and you’ll receive an itemized statement that reflects anything that was spent and earned during that month.
Property managers charge for vacancies in different ways. In some cases, you will continue to pay your monthly management fee, even when your home is vacant and you aren’t collecting rent from a tenant. Otherwise, you’ll pay a flat vacancy fee until you have a tenant in there providing rental income. If you’re wondering why you should be paying anything while your home is vacant – remember that a vacant property still requires time and attention from your property manager. Another thing to consider is that professional property managers will dramatically reduce your vacancy time, and that means more money in your pocket in the short and the long terms. As stated, most property managers charge a fee during this time, but there are property management companies that do not charge a fee when the property is vacant. Be sure to ask your prospective property management company if you will pay vacancy fees or not.
One of the most valuable services provided by a property manager is an inspection. The most critical inspections are before a tenant moves in and after a tenant moves out. This is how you will determine how much of the security deposit you’ll need to keep. When you have a well-documented move in condition report, you’ll be able to compare it to the move out report and see if any damage was done.
Maintenance is a huge headache that you can do without as a landlord. No one wants to be woken up at 2:00 a.m. by a phone call from your tenant about a flooded kitchen or a breakdown in the air conditioning. You don’t want your holiday parties and weekend plans interrupted by an emergency at your rental property. A good property manager takes care of these things for you. With the right manager, your maintenance costs will be lower because preventative maintenance will be a part of the overall strategy to preserve the condition of your home. That’s well-worth the fee you pay your property manager to schedule vendors, supervise repairs, and respond to emergencies.
Cost vs. Services
Don’t be discouraged by property management fees. When you hire the right manager, you’re going to earn more on your rental property. You’ll keep it occupied for longer with good tenants who pay rent on time and take care of the home. You’ll save on maintenance and repairs because your manager will have relationships in place with the best vendors and will negotiate better rates on your behalf. You’ll keep the property in better condition with preventative maintenance, regular inspections, and tenant accountability. Your property manager will know how to price the home, keep you out of legal trouble, and ensure your property performs at its highest potential.
So, if being a landlord has gotten stale – get fresh. We have some great ideas for your investment home. Please contact us at Komerci Group with any questions about Pompano Beach property management.