When considering using a Property Manager for your rental there are many factors to address beyond the dollar cost of a Property Manager handling your rental for you. One of the biggest is the peace of mind in knowing someone is handling your tenants 24/7.
You may not have considered all of the ways hiring a good Property Manager can actually save you money. Yes, you will have to pay the fees, but they can save you more than just cash.
“You have to account for the time and energy needed to find a high-quality tenant through applications, interviews, and credit reports. You also have to remain on top of your tenant’s deposits, rent checks, inquiries, and needs. Your tenant is paying you not only for a place to stay but also for service on the property. All of this takes time and know-how.” according to Money Crashers.
Knowing what your time is worth can help you see the true value of hiring a Property Manager. Time and costs will add up, especially if your rental is sitting empty.
The Motley Fool says the following, “First of all, owning a rental property can be done without a property manager, but that doesn't mean it's a good idea.”
Tenant Placement - 1 Month’s Rent
Ex: Rent $1200, Mortgage $700
Total of 1 Tenant Placement is $1,200
1 year of Mortgage Payments $8,400
You have profited $7,200 and your rental vacancy was filled, your mortgage got paid, and you increased your equity in the property.
Property Management - 10% of monthly rent + 75% of Tenant Placement Fee
Total of 1 Tenant Placement at 75% of $1,200 = ($900)
1 year of fees = $2,340
$1200 x 12 = $14,400 - Fees $2,340 and 1 year of Mortgage Payments $8,400
You have profited $3,660 and your rental was hands-off, your mortgage got paid, and you increased your equity in the property.
Nest Rest Easy Premium - Flat Fee of $225 a month + 75% of Tenant Placement Fee
1 year at flat monthly fee of $225 = $3,600
$1200 x 12 = $14,400 - Fees $3,600 and 1 year of Mortgage Payments $8,400
You have profited $2,400 and your rental was hands-off, your mortgage got paid, you are protected from evictions and sudden loss of tenants and you increased your equity in the property.
If you spend just 10 hours a month working on managing your rental property calculated at $25 (you must decide what an hour of your time is worth to you) per hour you are losing the equivalent of $3,000 each year in time just maintaining your rental property.
We have not even touched on the cost of an eviction, marketing your rental when it is empty, and the possibility of months of vacancy trying to get the right tenants...
What You Won’t Pay With Nest Finders
So, you can keep trading time for dollars to manage your rental home or turn it over to the professionals at Nest Finders. It will cost you some money upfront or monthly, but you will have the peace of mind of knowing it is being handled.
9889 Gate Parkway North, Suite 402
Jacksonville, FL 32246