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Managing A Single Family Rental Home: Big Potato Or Small?

Years ago, property managers portfolios largely consisted of apartments, commercial space or multi family homes.  The game changer in recent years has been the addition of single family residences that people cannot sell because of the market, so have decided to rent until things improve.  For a while, the “landlord” of a single family residence often was the owner or a smaller property management company. 

With the introduction of mega-investors in the market scooping up properties, who are moving their way into the single family homes market, it is making some changes for this niche. Some good - some maybe not so good.

Some things to keep in mind when looking for a big management company to handle your rental versus a smaller company:

The larger the portfolio a company has – the larger the margin of human error for managing your property – which could cost you money.  In some respect, this also applies to all management companies - think about it - how much personal service will you and your tenant receive from a company that manages even 300 homes compared to one that manages 100?

Renting becomes a “template” and “grid” vs. renting to quality tenants that have been interviewed.

Fees.  The bigger the company, the more the expenses, the higher the costs, the more fees passed on to owners. 

Renting commercial property is very different from renting single family residences. Single family residences require lots of hands on management.  Commercial properties – not so much since tenants are largely responsible for repairs, etc. Be cautious of a large commercial company moving into the residential arena – ask lots of questions and do your homework before signing on with anyone.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .

                                                 

 

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 .

 

Comment balloon 4 commentsGabrielle Kamahele Rhind • July 19 2014 06:39AM

Comments

Good morning, Gab.... anyone who needs the guidance from a property manager would be wise to call you, Gab... hope all is well with you.

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) about 4 years ago

Gab, I enjoy the small management company I use. It's more personal and I don't get lost to or behind  larger portfolios...

Posted by Paul S. Henderson, REALTOR®,CRS,, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Northwest.) about 4 years ago

Great article adn glad to see you back.. Haven't seen much of you lately.  

Posted by Florida Tolbert Team Keller Williams Advantage, Keller Williams Land Division Specialist (Keller Williams Advantage III Realty in Lake Nona) about 4 years ago

Excellent advice, Gabrielle.  Having a smaller responsive management company makes a lot of sense.  And, for the Tucson area, I know who to call!

(Hint:  KGC Properties LLC, Tucson Property Management & Real Estate)

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) about 4 years ago

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