You're Losing Money Without a Property Manager—Here's Why
One of the most significant objections we hear to hiring a property manager is the concern that it's an expense.
While there are fees that come with hiring any professional service, most landlords who understand the value of working with a property management company experience an increase in their bottom line.
The property manager you choose can significantly affect how much (or how little) your rental income improves with their services. When it comes to your West Bloomfield property, let's look at the costs of property management.
The Level of Service Affects Your Fee
Property management services come in a wide range of offerings—from basic lease-only services to full-service property management. The level of support you choose from your property manager helps determine how much you pay.
The simplest way to get started with a property management company is through Lease-Only services. These services usually include:
- Listing and marketing your property
- Showing your property
- Screening applicants
While tenant screening is one of the most valuable aspects of partnering with a property manager, landlords are responsible for everything else regarding their rental property when they select this tier.
You'll still have to collect the security deposit and rent, conduct move-in and move-out inspections, and handle any issues that come up with the tenant. You don't always pay less for these services compared to Full-Service—in the Detroit area, fees for Lease-Only services typically range from 8-11% of the monthly rent.
To get the best return on your investment with a property management company, go all-in—with everything a property management company can do for your investment, restricting to Lease-Only services can actually cost you more in the long run.
For only a slightly higher monthly fee than what you would pay with Lease-Only, you get more value from Full-Service management. With this level of support, you'll receive:
- Listing, marketing, and showing of your property
- Screening applicants and placing quality tenants
- Professional maintenance services—24/7
- Security deposit and rent collection
- Property inspections
- Financial reporting
- Legal guidance
With the skills of an expert property manager at your disposal, you'll see that the benefits for your West Bloomfield property far outweigh the costs of Full-Service property management. In general, prices for a typical Full-Service property manager run anywhere from 9-12% in the West Bloomfield area—just slightly more than Lease-Only services!
Are There Benefits to Partnering with a Property Manager?
If you need more convincing that hiring a property manager is worth the expense, let's talk more about how their services benefit landlords. Again, choosing the right property management company makes all the difference when it comes to the value of paying for property management services—that said, the wrong property manager can be an expensive mistake.
Is being a landlord your full-time job? Most landlords have a 9-5, full-time career separate from taking on a rental property. Managing a property in your spare time takes you away from spending precious evening hours with your family—and can even ruin your evenings and weekends.
With a property manager, you get your free time back: they handle everything during working hours—plus evenings and weekends.
Time is money: how much is your time worth? When weighing the "cost" of a property manager, consider the value of your time.
You don't have to chase down late rent payments or deal with tenant complaints; while you're in charge of all decisions regarding your rental property, when you have a property manager on your side, you don't have to have to interact with tenants at all.
No more dealing with unreasonable demands or negotiating payment for damages caused by your tenants—your property manager is your advocate.
One of the biggest challenges landlords face is keeping up with maintenance: if you've ever had to deal with a middle-of-the-night maintenance emergency, you already understand the value of handing maintenance off to someone else.
Your property manager is reachable at any hour—day or night. They also already have a network of vetted, professional contractors. When an emergency happens, your property manager can respond to your tenant right away and quickly schedule a repair.
Often, the maintenance savings you'll experience from using a property manager's network of professionals is worth the price of property management alone!
It might still be challenging to understand how adding a paid service to your rental property business can increase your income.
- Have you had trouble finding a good tenant?
- Has your property sat vacant for more than a month?
- Are you charging enough rent to cover your expenses?
Your property manager helps you find (and keep) quality tenants, reduces vacancy times and helps you set the right rental price for your market. These perks of a property manager help you make more money on your rental property—and keep it!
The Cost of NOT Hiring a Property Manager Is Too High
You're losing money on your rental property if you aren't investing in the best West Bloomfield property manager.
JMZ Property Management prices are easy to understand and the best value you'll find for our level of expertise: Our 10% Full-Service property management fee and Eviction Protection program are priced to guarantee your success. Plus, we love to offer discounts to owners with multiple properties!
Eviction protection is one of the significant perks of allowing an expert property manager to care for your investment: if it's ever necessary for you to evict a tenant before you find your perfect property management company, use our FREE Tenant Eviction Checklist. Remember, you're not alone with your West Bloomfield property—JMZ Property Management has the resources you need to succeed!