Investing in the property was an easy decision. The numbers made too much sense. But deciding whether to manage it yourself or partner with a property management company is a more challenging decision.
Managing yourself would mean saving whatever amount you would otherwise pay to have an outside manager, but the actual cost can often be much more difficult to calculate than you might expect.
Because they know the market well and usually the first point of contact when tenant needs arise, the right property management company can often help guide you on selecting a tenant for your space or retaining your current existing tenant(s) at possibly a higher rate than you would be able to command on your own.
Property management companies also tend to do a better job collecting from tenants and assessing late fees when necessary. Putting a third party in charge of collecting will eliminate tenants asking you directly for help on rent or late fees.
An experienced property management company will not only create relationships at the local level, but also should already have strong relationships at the national level. Being entrenched in the industry your tenant is in an experienced property management firm can anticipated changes and trends at the local level, even before your local tenant is aware of them.
Experienced property management companies will also find ways to save money on property expenses increase the service levels and the vendor quality.
Having someone available to take the call when a tenant has an issue is a huge selling point, but how a management company addresses those tenant issues can create significant savings for the property’s cash flow.
When a property manager has long-term relationships with contractors and suppliers, they can often command better pricing thanks to economies of scale and their ability to provide consistent work.
One final way that hiring an experienced property manager can save money in the long run is by making sure the property is operating in compliance with all federal, state, and local laws.
Dealing with any lawsuit can be a considerable expense, so actively working to avoid something like that could save an enormous amount of money without you noticing it.
Experienced property management companies free up the property owner’s time to focus on landing the next big deal. Do you own and manage a GSA or Government asset? Contact us today to schedule a conversation about how we can add value by managing your properties.