How Hiring A Property Manager Can Save You Money
If you are a private landlord, you may look at the rates charged by property managers and figure "that's not worth it." It may initially seem like you're throwing away hundreds or thousands a month by hiring someone else to take care of your properties for you. However, this is the opposite of the reality that many landlords enjoy when they hire a property manager. Many find that they actually save money by hiring a property manager. Here's how that can work.
You'll find tenants faster.
If you're a busy landlord who is trying to also juggle a job and family responsibilities, you may not have a lot of time to solely dedicate to finding tenants. As such, your rental unit may go unoccupied for a month or two between renters. That's a month's worth of rental income that you miss out on! A property manager's job is to find renters; they can really focus on it. As such, they will be able to find someone sooner, so you don't have months without rental income.
You'll get tenants who are more likely to pay and take care of the place.
A good property manager knows how to screen tenants and is more likely to find someone who pays rent on time, every month. They are also more likely to find tenants who take good care of your place, so you don't have to spend as much on repairs between renters. Not having to replace the carpet will often negate the cost of hiring a property manager for the year!
You may be able to charge more for rent.
Property managers also know the rental market in the area, and they'll know how much they can reasonably charge to rent out your space. You may be undercharging just to get tenants in. A property manager will often raise the rent a little, which will help account for the cost of hiring them.
You'll get discounted rates on plumbing, electric work, etc.
Most property managers have existing relationships and contracts with plumbers, electricians, and other contractors. As such, you will pay less when you need to have work done on your rental property. You may save $20 on a furnace service call one month and $20 on a plumbing visit a month later, but these small savings add up.
Hiring a property manager can actually be a great way to save money as a landlord. Don't let the upfront cost of paying a property management scare you off!