Top 5 Ways Real Property Management Saves You Money
Most people who own rental housing have one of two goals:
1: Earn extra income from a rental investment
2: Break even (or lose less) on a house that can’t be sold for what is
owed to the bank
Hiring a professional property manager may seem like an additional expense that works against your goal to make, save, or lose less money. However, just the opposite is true. The Real Property Management system saves you money by working more efficiently to avoid and shorten vacancies, place the right tenants, collect on or evict the wrong tenants and maintain properties cost-effectively.
Let’s take a closer look at the top five ways Real Property Management helps you get a better return on your investment.
As a property owner, your top priority is to keep the rent coming in. Placing the right tenants reduces the chance of nonpayment and eviction, while responsive maintenance keeps tenants happy so they’re less likely to move when the lease is up. The fastest way to fill a vacancy is to avoid it all together.
Every day costs you when your property becomes vacant, so quick placement is essential. An aggressive marketing strategy, responsive showing and screening and a streamlined leasing process make all the difference. Setting rent at a marketable rate based on local expertise also helps your property lease faster.
The Right Tenants
On average, placing the wrong tenant will cost you 4 to 6 times the monthly rent rate, and with the uncertain economy, tenant evictions have reached an all-time high. Hiring a professional to perform the tenant screening and background checks is critical and reduces your risk of financial loss. When an eviction is necessary, you can expect an average total loss of approximately $4950 on a $1,000/month rental. Real Property Management saves you money with smarter placement and a rigorous background screening process, including credit, employment, rental history, criminal and terrorist checks.
Faster Collections And Evictions
Again, time is money in the rental property business. When collections and evictions are necessary, a streamlined, automated system ensures that progress is made as quickly as possible, all laws and codes are followed and no step is missed. Our streamlined process is based on 25 years of experience to help you avoid legal pitfalls throughout the process and get the best possible outcome in a difficult situation.
Cost Effective Maintenance
Maintenance is a necessary part of owning rental property, and to adequately care for the unit, owners should expect to spend 1 to 2 times the monthly rent on maintenance per year. If you are spending less, you risk higher tenant turnover and longer vacancies. Plus, when you take care of the property by providing timely maintenance, your tenants are more likely to take care of it too, which also keeps maintenance costs down. As a national company, Real Property Management pays less for maintenance materials and services and we pass that savings on to you. We also know how to proactively manage maintenance and respond to tenant requests to save you money long-term. Learn more about maintenance.
Just like your other investments, you get a better return when your rental investments are professionally managed. Put Real Property Management to work for you—for a better return.