If you have rental property or are looking to enter this market, using a management service might have passed your mind. However, due to the common myths about these services, you might reconsider and consider managing the property yourself.
But there is no better way to get the best value from your property than using a professional management service. Here are some of the most common myths about rental property management and why they are false.
Property management is expensive
Property management does seem expensive to unassuming eyes because of all the value-added benefits attached to these services. However, having a property manager takes off a huge burden from your shoulders since you do not have to be more hands-on in most aspects. Due to this, the price seems a bit hefty, and low-scale property owners might think they can’t afford a management service. However, the truth is the services provided by managers are fairly rated and made to be affordable for landlords.
Evernest, APM, and 8Z provide these services at flexible rates that align with the profitability of each property. Every professional Boulder rental agency charges nominally and does not have an excessive flat rate for property owners, making the pricing structure very affordable and reasonable. Instead of wasting money on trying different things, using property management services can streamline revenue and help grow prospects for higher profitability.
Vetting tenants is overrated
The entire game of rental real estate revolves around getting tenants, and how most landlords source or sign each tenant seems irrelevant. But unfortunately, most landlords that manage their properties ignore the means they use to find tenants, which can be problematic.
Vetting tenants is a crucial aspect that property managers handle. With all the resources and experience they have with different types of rental property, the management services can find the best types of tenants for landlords. But unfortunately, landlords think this process is overrated and could stifle profits.
Processing each tenant before giving them the keys to your property is never overkill. First, you need to have a clear picture of who is renting the place, his source of income, and his credit score. That is how you get standup tenants with the least amount of problems regarding rent payment or other potential legal issues.
Property management is all about physical maintenance
What comes to mind when you think about property management? For most, a handyperson with a toolbox maintaining the building might be the first thought of this service. However, if that were true, property management services wouldn’t be as valuable as they are nowadays.
The services provided by property managers far transcend the physical aspect of it all. You might need a handyperson as part of this service, but this industry does not simply revolve around building maintenance. There is a world of things that go on behind the curtain, such as rent collection, tenant vetting, and handling legal documentation for landlords. In a nutshell, property management simplifies the whole experience for landlords, both administratively and physically.
Property managers only manage large properties
Another common myth is that property managers are for large properties or real estate complexes. This myth seems plausible because the large properties require more administrative help and building maintenance than just one property unit.
The benefits of property management services are their flexibility and scalability. Of course, if a large building requires any of these services, a strategic management plan can get formulated for that property. However, that is not all property managers do. Even low-scale rental property such as a single residential building or apartment unit falls under the scope of services provided by property managers. Therefore, property managers do not only manage large properties, but they can also help low-scale rental landlords to maximize their profits and get the most out of this investment.
Landlords lose control over their property
Having control over the real estate you have invested in is a feeling that is incomparable to another. You control its profitability, alterations or renovations, and much more. However, getting off the “driver seat” is daunting, and losing control over your real estate business might not be something you had in mind.
Fortunately, you do not have to get off the driver’s seat because property managers only assist landlords with their duties. You are still the boss but with additional help and guidance from experienced specialists within this field. That allows you time to hunt for other properties you could rent out or time to focus on what you love doing.
Property managers do not deny your executive authority over the property since all big decisions get to run through you for approval. The services just got designed so you don’t sweat all the small stuff that could be a distraction from what’s most important. That can allow landlords to see beyond their current responsibilities and find growth opportunities they can seize.