Property Management – Should Real Estate Investors Hire Property Managers?
www.REIClub.com – Are Property Managers Better Landlords Than You? Here’s a Video on the Pros and Cons of Using Property Management… Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on the Pro’s and Con’s of using a property management company. Accredited Certifications Institute of Real Estate Management (IREM) – Certified Property Manager (CPM) – Accredited Residential Manager (ARM) – Accredited Commercial Manager (ACM) – Accredited Management Organization (AMO) What do Property Managers do? – Collecting and Depositing Monthly Rent Payments – Control Rental Rates – based on market trends – Marketing and Advertising – Inspections – Tenant Screenings Pros: – Time Management – property manager takes care of the routine daily tasks, you are free to focus on other investments and/or your own career. – Remote Locations – manage properties in a different locations – Access to Professionals – vendors, contractors, etc… – Housing Regulations and Property Law Cons: – Overall lack in control – Profit margins – Because they are paid based on gross income, they will not manage the bottom line properly. ie. net income. – They will never dedicate the energy to your property that you would. – Money (or CON) – property managers charge a percentage of the monthly rental rate which can range anywhere from 6-10%. – frequently keep late fees – may make margins on repairs – no control over quality of repairs – no …
