Newby real estate investors who want to wade in the waters of owning income-generating property often begin by investing in just one or two rental properties. With a smaller portfolio, it can also feel less overwhelming to take on the responsibilities of managing the rental properties themselves.
Moreover, they might also (wrongly) assume that it is cost-prohibitive to hire a property management company when they can just do it themselves.
What many property owners are surprised to discover, however, is that it can, in fact, be cost-effective to hire a property management company to take over the day-to-day responsibilities of tenant relations, maintenance, accounting, and rent collection (for more about what services a property manager provides, be sure to read this).
How a Property Management Company Saves You Money
If you enjoy managing your rental properties and have the time and resources to do so, there’s no need to hire help, but oftentimes people mistakenly believe they will be eating into their profits if they have to pay a monthly fee for someone else to do what they are able to manage themselves.
The numbers, however, sometimes tell a different story.
Property management companies have the resources, skills and experience to increase your property’s performance while reducing your expenses.
For example, hiring a property management company that charges $99 per month but is then able to increase your rent, your net operating income (NOI) and your property value while also reducing your expenses because they have pre-negotiated rates with repair companies is what you call winning all around. For more about how to maximize your property’s value, you can read more here.
If you have questions about property management or would like to know more about the Columbus real estate market, please contact our team at RL Property Management today.