Don’t be ashamed if you’re an investor — or maybe even a seller or broker — wanting to seek some outside property management assistance. It’s normal in this industry. Sometimes that row of houses can get you way over your head as you focus on all your rental property expenses —
- Maintenance Costs — Factoring in those maintenance expenditures is a must.
- The “OEP” — That would be the “operating expense percentage,” of course.
- Property Insurance — You obviously have to have your property insured, right?
Want to pull your hair out, yet? Don’t worry. We do, too. And trust me: this isn’t any April Fool’s joke either.
All Joking Aside, You Might Need Some Property Management Help
Factor in the cost, though, because what matters is your bottom line, right? Your ROI, though, if you play it right will skyrocket the way Avengers’ Iron Man would if all your properties start getting the maintenance they deserve and the buyers/renters they want, though. You’ll then see on social media the selling of homes skyrocketing just as much all because you invested in that outside property management company to manage the rest of the headaches you don’t want to face.
What’s the standard you should look for in terms of pricing? Simply put, you want the cost for property management to be at around 6% to 8% of the monthly rent, and don’t forget to include any re-leasing costs as well if necessary. This could account for maybe half to even a full month’s rent added onto the monthly fee percentage, but when it’s all said and done, you’re not getting way over your head with costs vs. maintenance and quality of the homes.
Talk About a Way to Provide the Best Possible Product
This assists renters in ways only sellers could ever imagine. Quality housing. Sometimes, though, you’ve got get that extra bit of help from some outside property management to make it all happen. When renters get what they want, you do as well.