Property Management Companies: Are They Worth It?
A very common question property owners have is “How much do property management services cost?” Let’s break down the finances: there are two fee structures that property management companies rely on: 1) a flat rate fee or 2) a percentage of the rent every month. Let’s talk about how property management companies can benefit you, in ways other than with your property.
|Tax Deductible ServiceFun fact: the tax deductions you can take when you work with a property manager practically pays for the services itself. Talk to your accountant or tax preparer first, but the property management fees you pay can be written off as a cost of doing business when you’re filing your taxes.
Better Tenant Quality
A professional property manager has thorough, detailed screening criteria in place. This ensures that you get a highly qualified tenant. If you don’t do a thorough job of screening, you run the risk of getting a tenant who will damage your property and stop paying rent. The cost of evicting that tenant will easily be a lot higher than any property management fee. And we take care of evictions; the dirty work is all ours.
If you aren’t up to date on all the latest landlord and tenant laws as well as property code regulations in Arizona, you have the potential to get into trouble. There are also national and state fair housing and rental property laws that you need to pay attention to. One legal misstep can cost you thousands of dollars in court fees and settlements. Having a property manager who spends a lot of time following the law will keep you protected and out of court.
A landlord who uses vendors once in a while is going to pay a lot more than a professional property manager who gives that vendor a large volume of work on a regular basis. One way to save money with a property manager is by taking advantage of those volume discounts. You also won’t have to worry about using a vendor who is dishonest, unlicensed, or unable to complete a job. Property managers screen vendors as strictly as they screen tenants, so you’ll save money and work with the best.
|So yes, hiring a property management company is worth it, in the long and short run of owning your property.Spending money on professional property management services is an investment in your rental property. You’ll save time in the short term and money in the long term. With an experienced and legal property management company by your side, you will never find yourself in a nightmare of dealing with tenants or legal trouble.|