Are you among the 60% of Americans who feel like there isn't enough time in the day to get everything done?
If so, you may worry that something has to give. Lots of investors fear that they can't keep up with maintaining their rental property businesses because of their schedules.
Have you ever wondered if turnkey property management is worth it? Read on to see how it differs from in-house property management.
What Is an In-House Property Manager?
It's imperative to understand in-house property management first. This means the property owner manages the rental properties themselves by doing the following tasks:
- Finding tenants
- Collecting rent
- Property maintenance
- Addressing tenant issues
In-house management gives property owners direct control over their properties. It allows them to be more involved with the everyday operations. It can also save money since there are no management fees to pay to a third-party manager.
Drawbacks of Property Owner Management
In-house property management demands a significant time commitment and expertise, though. Property owners have to be ready to handle the following responsibilities:
- Marketing vacancies
- Screening tenants
- Dealing with maintenance issues fast
- Enforcing lease agreements
Some owners have several rental properties or other commitments. This would make managing properties in-house overwhelming and time-consuming.
Perks of Turnkey Property Management
On the other hand, hiring a third-party property manager can offer several benefits. Third-party property managers are professionals with expertise in running rental properties. They can take care of everything that would otherwise cost you time and stress.
Third-party property managers also bring special knowledge to the table, which can be valuable for maximizing rental income and lowering vacancies. They know how to attract amazing tenants and maintain properties well. Property managers also stay updated on relevant laws so property owners can remain compliant with legal requirements.
Hiring a Service and Rental Income
Hiring a third-party property manager can provide property owners with a passive income stream. What can they do instead of being actively involved with their properties? They can step back and enjoy the benefits of rental income without the hassle of handling tenant issues or maintenance tasks themselves.
This passive income can be especially appealing for property owners looking to diversify their investment portfolio and generate extra revenue streams.
Of course, hiring a third-party property manager comes with costs. These fees often range from 8% to 12% of the rental income. Your cost will depend on the specific services and the location of the property.
While these fees may eat into the rental income, many property owners find that the perks of hiring a pro outweigh the costs.
Do You Need Help Running Your Rental Property?
Both in-house and third-party property management have their pros and cons. In-house management offers direct control and potential cost savings but needs significant time and expertise. Hiring a third-party property manager can save time, provide industry expertise, and offer a passive income stream, but it comes with management fees.
Are you interested in learning more about turnkey property management in Richmond? Contact Renters Warehouse to discuss how our management services can uplift your business. We've been helping rental property owners since 2015.
