Many of the rental property owners who contact us want to know how much property management services cost. That’s a fair question, but it’s not the one you should be asking. Instead, you need to know how much money professional property management can actually save you. Most property managers will have a fee structure set up that requires either a percentage of the rent every month or a flat rate. Some property managers will include all their services for one fee and others will ask you to pay more for anything extra, such as lease renewals and marketing. Talk to your property manager before you sign a contract so you know exactly what you’re getting for your money. Here’s how using a professional will save you money in the long run:
Tax Deductible Services
Most people don’t realize that the tax deductions you can take when you work with a property manager practically pays for the service itself. Talk to your accountant or tax preparer first, but the property management fees you pay can be written off as a cost of doing business when you’re filing your taxes.
Better Tenant Quality
A professional property manager has thorough, detailed screening criteria in place that ensures you get a highly qualified tenant. If you don’t do a good job of screening, you run the risk of getting a tenant who is going to damage your property and stop paying rent. The cost of evicting that tenant will be a lot higher than any property management fee.
If you aren’t up to date on all the latest landlord and tenant laws as well as property code regulations in Phoenix, you have the potential to get into trouble. There are also national and state fair housing and rental property laws that you need to pay attention to. One legal misstep can cost you thousands of dollars in court fees and settlements. Having a property manager who spends a lot of time following the law will keep you protected and out of court.
A landlord who uses vendors once in a while is going to pay a lot more than a professional property manager who gives that vendor a large volume of work on a regular basis. One way to save money with a property manager is by taking advantage of those volume discounts. You also won’t have to worry about using a vendor who is dishonest, unlicensed or unable to complete a job. Property managers screen vendors as strictly as they screen tenants, so you’ll save money and work with the best.
Spending money on professional property management services is an investment in your rental property. You’ll save money in the long term, protect yourself and your property and sleep better at night knowing you have an experienced professional on your side. If you have any questions or you’d like to hear about our services, please contact us at PRS Property Management.