When is a good deal a really good deal? And when is it really too good to be true?
Someone who really values the effort we are putting in at their apartment complex to improve it for all the owners has not yet brought their properties over to our company, despite being more than impressed by us. Why not? “Because I only pay 6.5% management fee at the company I am with”. Fair enough. What rent do they get? “$660 per week for 4 bedrooms”. Each week they pay $42.90 for management, leaving them $614.10. Sounds alright, but let’s run the numbers for our clients at those apartments. We manage an identical apartment and we get $695 per week rent. Our fees are higher at 8%, but the money our clients get is $639.40. That is $25.30 per week extra, or $1,315.60 each year. Which is the better deal? The one with the higher management rate!
So when you are shopping around for property management, don’t just go on the fees. Find out how proactive they are about rents, because that makes a much bigger difference to your pocket. Want results? Get Rental Results!