As a real estate investor, you may want to simply self-manage your rental properties. But unless you plan to be a full-time landlord, the sheer number of activities can become overwhelming. At some point, you may want to consider getting a property manager.
Maybe you’ve heard that exorbitant property management rates will just eat into the returns on your investment. Other rental home owners swear that using a property manager saved their sanity and saved them money. That sounds ideal, but how much do property managers charge in central Florida?
What Does a Property Manager Do?
To understand what you get for the cost of a property manager, it helps to understand exactly what they do. As you can imagine, the list varies from company to company.
Generally, property managers will research rent rates for you and offer suggestions on improvements before listing the property for rent. Next, they’ll usually cover advertising and showing the rental, screening potential tenants, and finalizing lease agreements and move-in activities.
Most will assist with rent collection and (voluntary) move-out activities, including assessment of damage and repairs. Some will also help with rental inspections and assistance finding contractors for maintenance and repairs. Some property managers will guarantee quality tenant placement within a certain timeframe.
Less commonly, some property management companies offer full realtor services, too. They can help you buy new rental properties or find a buyer for your current property. Some will also offer access to their real estate attorney should owners need legal support with evictions or property disputes.
What Do Property Management Costs Cover?
Most property management companies will charge 8-12% of rent rate for their services each month. But depending on the company, their fees may cover all or only a portion of the total cost of their services.
Beware of any property managers charging far less because, sometimes, you get what you pay for with shoddy services. Or, you may have a low fee, but like those discount airlines, you may get nickel and dimed for Every. Single. Additional. Thing.
For example, some will charge fees for additional services like
- Tenant screening
- Financial reporting
Others might also charge set-up and early termination of agreement fees.
Property Management Costs vs. Doing it Yourself
Of course, you could decide to forgo using a property management company for your Orlando area rental. You likely know that preparing for and placing tenants and managing that relationship takes time and energy.
Apart from that, you’ll need to think about who will handle the ongoing hands-on duties once you have renters placed. For example, do you have the availability to answer emergency calls, regardless of the time of day? Who will do any of the necessary work to the property? If your tenants don’t pay on time or you receive complaints, can you play the Heavy to address problems?
At The Realty Medics, we take our responsibilities to our property owners very seriously, providing full support. As the highest-rated five-star property management company in the area, we strive to provide our clients with “Property Management Peace of Mind.”
Ready to Learn More?
To learn how we can help, call us at 321-218-4753 or complete our online form to learn more about our free rental analysis.