Desperate call this week, “I need someone to take over managing my property.” After some inquiry – the problems are very typical of a DIY landlord – no rent, damage to the unit, tenants ignoring calls.”
After a few more questions, the truth came out – the owner really didn’t want someone to manage his property, he just wanted to someone to evict the tenants – and property managers are cheaper than attorney's.
I hear this often – DIYs do not want to pay a property manager because they can do most of the work themselves, they just need someone to step in and handle the problems from time to time. This all in an effort to save money.
But this really doesn’t save money – in this case, if I was the property manager – the annual cost for this owner would have been $1,200. He has not received rent in 3 months. That loss? $3,000 - leaving the owner silent.
If you are concerned about numbers with hiring a property manager, here are some things to ask:
What are your fees - all of them?
Are there any hidden fees, i.e., fees to check property, for direct deposit, etc.?
Does the company add a percentage on top of repair costs? For example, some companies with in house repair handyman will charge owners 10-20% above the repair cost to offset handling the repair.
Are there administrative fees? Some companies charge, for instance, 8% a month to manage the property, but then another $25-50 a month “admin fee”.
If the bottom line is your bottom line, be smart, hire a property managerfrom the get go - because at least for me, I don't do "diaster relief" - evict the tenant first - then call me.
This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .