A Property Manager is worth the cost if they provide enough value to justify the cost.
How does a Professional Property Manager provide Value?
The number one way a Property Manager provides value is to Minimize Vacancy.
Rent is the sole source of income to the equation.
( Rented days – Vacant days – Expenses = Gross Revenue )
What are the 3 most Common ways Self-Managed Landlords have failed and Could Benefit from Professional Property Management?
Pioneer PM has complied supporting data in over a decade of experience working with owners who have tried Self-Management and are now satisfied clients.
- Allowing leases to Lapse Month-Month. This is the most common mistake Self-Managers make. It’s very easy to become complacent with a good tenant and then when that tenant leaves with only a Month notice they need to: advertise, show the property, screen tenants and turn the property back to a good baseline condition. Turnover takes time which results in vacancy unless a proactive approach is utilized.
NOTE: If the tenant decides to end their Month-Month lease in the Fall or Winter it immediately leads to #2.
- Not timing the market. For many properties the time of year is extremely important to capture both the highest rents and largest applicant pool. Market timing maximizes rent and minimizes the time it takes to secure a new lease with qualified tenants.
- Advertising in advance of vacancy. This is as simple as it sounds however most Self-Managed landlords miss this step and do not start advertising until the property is vacant and then have further delays with the make-ready stage. Systems to anticipate and enforce lease deadlines are crucial to avoid vacancy.
Be Aware: Large Scale Property Managers may miss the timing of the market (#2) for their clients. Take a look at the ‘Rental Search’ or ‘Available Properties for rent’ for some larger companies during the middle of the winter.
These companies do not capture the market timing for their clients and allow vacancy at any time of year.
Vacancy statistics quoted can be extremely inaccurate because they may or may not take into account if the property was priced correctly or if the landlord was fishing for unreasonable rent.
You now know the #1 method a Property Manager can provide consistent value to their clients. Would you like to learn the MULTITUDE of other methods obtained when a Proactive, Engineered approach to Property Management is applied? Call today!