—"I can't afford it right now." Is that how you're feeling about hiring a property manager? If so, you might only see the initial investment costs without considering the return on investment (ROI).
Some real estate owners make their first mistake by not hiring professionals because they assume that all property management services require the same type of fees. However, here's why hiring a Wilmington property management company can pay off (and why you could lose more money the longer you wait to hire one)!
Leverage a Property Manager's Expertise to Fill Vacant Units
Let's be honest. Managing properties by yourself take work. Even if you have help, you limit your exposure to a larger market, and the expertise professionals bring to the table. It also becomes more difficult to scale your real estate portfolio with more rentals when property owners don't seek out rental management to support growth. The complexities and responsibilities can become overwhelming.
With more rentals also comes the need to fill more vacancies to make sure each property generates rental income. One of the best reasons to hire a Wilmington property manager is that they can successfully find quality renters and reduce vacancy times. A rental manager also improves renewal rates to maximize returns!
Without high occupancy rates or good tenants to pay the rent on time every month, property owners lose money!
A Property Management Company Reduces Maintenance Costs
To attract quality residents, rental property owners must make upgrades and improvements—but without help, maintenance can take up your free time and repair budget. It takes the stress out of real estate ownership.
The best property management Wilmington offers helps investors maximize maintenance costs by applying professional, quality repairs and preventive work to avoid expensive (or repeat) repairs. When property owners deliver quality rentals and professional maintenance services, residents feel safe and comfortable! They're more likely to renew their leases, which means those upgrades and proactive maintenance plans pay off.
Property Managers Deliver Best Practices to Maximize Returns
Hiring a Wilmington property management company is one financial decision that you cannot afford to skip. Despite the financial investment, your rental management company can maximize your returns in several ways, including:
- Improving on-time rent collection to stabilize cash flow
- Reducing vacancy times
- Pricing rentals to ensure the most revenue
- Performing routine maintenance services that reduce long-term repair costs and renter complaints
- Conducting routine inspections to keep rentals safe and monitor tenant behavior
- Mitigate risks by avoiding bad tenants, maintaining properties well, and recommending best practices for leases and insurance
An investment property manager does much more than collect the rent! However, how can investors know they chose a company that won't overcharge them for services? It's important to understand pricing models to make sure you get the services you need that fit your budget (and boost your returns)!
Flat Fees or Percentage? Which is Better for You?
Wilmington property management companies vary in their service charges. Typically, property managers might charge monthly management fees of 8-12% of a property's monthly rent amount. However, with adjustable rates, investors must be careful of hidden costs or "additional" costs for more services.
Some property managers charge a flat rate instead of a variable fee. With a flat fee plan, property owners pay the same rate every month for a variety of services.
Rentwells' OneRate™ Pricing Is Different
With Rentwell, there are no hidden costs. From updates and upgrades to routine maintenance, repairs, rent collection, tenant management, and marketing, you have everything you need for a flat rate with no surprise fees.
With Rentwell's OneRate™ pricing, our management fees and services are transparent. Property owners shouldn't have to wonder what services are included in a monthly fee or if a critical service they need will cost extra. In some cases, investors with homes for rent can save as much as $1,500 per month compared to a traditional rental management pricing structure based on a variable fee (with additional services for additional costs).
Where a traditional property manager will charge fees for separate services like lease renewal, seasonal maintenance, emergency availability, and evictions, Rentwell doesn't believe that those "typical" services should incur "additional" costs! These services are simply part of what we deliver to help investors maximize returns and deliver the best rentals in Wilmington.
Don't Let (the Wrong) Costs Keep You From Professional Management
Renting out properties on your own can cost you more money in the long run. However, we understand that a traditional pricing structure can keep rental property owners from the professional management services that they need! An experienced property manager can quickly fill your vacant units at ideal rental rates, reduce maintenance costs, and maximize your returns. With the right pricing structure and Rentwell's expertise, investors can also scale their portfolios faster!
For more information, sign up for the free OneRate™ Calculator to see how Rentwell’s pricing compares to other pricing structures for rental management in Wilmington!