Read the blog below:
Property management doesn’t cost landlords anything in many, many cases. Here’s how. Take this situation. For example, we had a property that we took over in the fall right here in Watertown. Unit one, landlord was receiving $1,500 a month. Unit two, landlord was receiving $1,800 a month. Since that time we’ve re-rented the units, those tenants moved out. We rented them for $2,000 a month and $2,500 a month.
The total rental income prior to hiring us was $3,300 a month, now they’re up to $4,500 a month. That is an additional $1,200 a month in total rental income. Pretty bad. Number two, there additional $1,200 a month. Now, yes, there are property management fees. It’s not free but fees vary from say 3% to 8% depending upon how much of the services are from our menu that a landlord actually needs. Let’s say the fees on this form were $200 to $300, even say $300.
Even if the fees were $300 a month, which I don’t believe they were, but let’s just say, that’s an additional $900 a month net. Now, this landlord is doing nothing and netting $900 additional. That’s exactly how property management can cost you nothing, but also make it so that you don’t have a care in the world about the property. You don’t have to worry about getting calls in the middle of the night, repair calls. You don’t have to worry about collecting rents. You don’t have to do anything and you get more rent.
We see this happen time and time and time again, all the time. It’s a common practice. This is just one example, and we have had even more extreme examples, we’ve had properties come in at $1,500 and end up at $3,000. This is more of a typical example and that’s why this is the one that I wanted to use right over here in Watertown. That’s all folks. I hope that makes sense. Talk to you soon.