Landlords, are you thinking of hiring a property management company to manage your rental properties in 2016? Have you decided what type of property management service package is right for you? Some landlords prefer a full-service property management package. Other rental property owners want to hire a property manager for a specific handful of services while performing the rest of tenant-landlord tasks themselves.
To help you decide what type of property management service package is right for you, we’ve put together a list of questions to ask yourself to help determine whether or not you need a full-service property management package or one that leaves some duties up to you. If you have any further questions or would like to discuss the North Carolina property management service package options offered by Red Door Company, please do not hesitate to contact us.
Monthly Time Investment
How much time are you comfortable investing, on a monthly basis, to manage your rental properties? This is an important question to ask yourself when trying to decide what type of property management package fits your needs as a landlord. Do you mind collecting rent, answering maintenance calls 24/7, participating in the eviction process and other monthly duties associated with your rental homes?
If you have the time to invest and want to be involved in these types of tasks, then you should consider a package similar to Red Door Company’s Lease and Re-Lease package. It includes services such as marketing, lease negotiation, and tenant screening while leaving the hands-on property management duties up to you. On the other hand, if you chose to invest in rental real estate as a way to generate passive income and to free up your time for other activities, then a full-service property management package makes more sense.
Time is Money
How much is your time worth? Even if you have the time necessary to self-manage most of the monthly, tenant-related duties of rental property management, does it make financial sense to do so? Take a look at the following example to get a sense of how you could save money by utilizing a full-service property management package.
Rental Property Scenario Example
Rent = $1200/month
Your rental property’s water heater breaks and causes some flooding. The vendor cost is $4,000 including water damage remediation. Ultimately, arranging for repair services, dealing with tenant, etc., takes about 10 hours.
~10 hours x $35 per hour (average wage rate of beginning investor) = $350 in lost time/labor just for handling this one repair issue.
Red Door Company Full-Service Property Management Package
~10 hours to arrange services, deal with tenant, etc. included in $120/month management fee (10% of monthly rent).
Location of Rental Properties
Where are your rental properties located? Many real estate investors own rental units in locations other than where they reside. If this is the case with your investment properties, then it makes sense to consider a full-service property management package.
There can be a variety of hurdles for landlords trying to self-manage rental properties from a distance. Establishing relationships with vendors, being available for emergencies, understanding the local rental market and showing your rental property to potential tenants can all eat away at your valuable time. Even if you hire a property management company solely for marketing, screening and leasing your property, the time and cost involved in managing tenants and monthly property duties from a distance can easily put a dent in your rental profits.
Comfort Level with Compliance
How comfortable are you with federal, state and local laws and ordinances? Do you have a sound legal understanding of leases, security deposits, Fair Housing and evictions? Remember, failing to comply with your legal responsibilities as a landlord will result in spending a great deal of time and money dealing with fines, tenant disputes and lawsuits.
When you are hiring a property management company in North Carolina, review their property management packages to ensure each offering provides a level of compliance you are comfortable with before making your final choice. Even if you want to handle the daily tasks of managing your rental properties, finding a company which offers a package that provides compliance related services is the smart way to go.
Full-Service Property Management
What you should you expect from a full-service property management service package? When landlords choose a full-service package, they should expect their rental properties to operate on autopilot. Red Door Company’s full-service packages include the full scope of property management services. From marketing, accounting and tenant screening to lease negotiation, rent collection, 24/7 maintenance and repairs, evictions and tenant retention our services are designed to minimize vacancies, maximize rental rates and grow your bottom line.
Lease and Re-Lease Package
What can you do if you don’t want a full-service package, but still need help with property management services like marketing your properties, negotiating leases and ensuring compliance with tenant-landlord laws? If you are feeling overwhelmed by the responsibilities associated with being a landlord, then Red Door Company’s Lease and Re-Lease package can help. This type of rental property management package is ideal for landlords who wish to handle their own tenants, rent collection and maintenance issues, but who also want to utilize our marketing expertise, online showing and lease application technology and tenant screening and lease negotiation services, which are all designed to help you fill your rental properties with high-quality tenants as quickly as possible.
Now that you have a better understanding of what type of property management service package is right for you, contact us here at Red Door Company to learn why our landlord clients say working with Red Door Company is The Right Way to Rent®.