Purchasing an investment property to rent out to tenants can be a profitable venture. But when making this decision, you also have to decide if you’re going to manage the property personally or if you’re going to fire a property manager to take care of the day-to-day details.
An investment property manager may seem expensive at first, but they can make your life a lot easier as well by handling the many aspects of investment property ownership.
It’s a good idea to understand what an investment property manager can provide and how much it will cost you.
Rates and fees can vary greatly.
In the most general terms, most property managers charge between 8% and 12% of collected rent. In some cases, a property manager may charge a more significant percentage of the first month’s rent to cover costs related to installing a new tenant. If you have several rental properties or own a multi-unit property, you may be able to negotiate a slightly lower rate.
Another factor that can affect rates is if the rentals are short or long-term. For example, a vacation property with frequent turnover may have property fees running up to 40%. If you’re renting weekly or monthly, your property manager has more work in dealing with a succession of tenants, handling incoming and outgoing, cleaning, maintenance, and so forth. By contrast, units rented for a year or more require less work.
Not only will costs vary, but so will services. That’s why it’s a good idea to shop around a but for the best investment property manager for you.
As you consider how much an investment property manager will cost, you should also consider what value they can bring. Of course, not all property managers offer the same set of services, so when interviewing property managers, get specifics about what they bring to the table.
Here are some specific services a valuable property manager can provide:
When selecting an investment property manager, it’s good to remember the adage, “You get what you pay for.”
While some property managers may ask for significant fees, they also provide effective services that can save you a lot of time, hassle, and unnecessary expense.
The largest city in North Carolina, Charlotte offers residents a laid-back atmosphere, country charm, options for modern living, and a wealth of outdoor activities. So it’s no surprise that Charlotte has been receiving a lot of attention over the past few years.
Some of the top areas for investment properties include:
Whether you plan to treat your property investments as a part-time or full-time venture, you want to make sure you’re making the most out of the investment. While hiring an investment property manager can seem like an added expense, they often more than makeup for the cost.
Take your time before deciding—research property management services in your area and what they have to offer. Find out what they cost. Then, figure out what their services are worth to you.
If you have any questions, you can always contact the experts at Henderson Properties in Charlotte to help figure out the best choice for you.