Residential property management offers several key cost savings to property owners. While the property owner gives up direct control of day to day management, in exchange, he or she can benefit from time savings, reduced repair, security and landscaping costs. Additionally, property owners will benefit from increased or maintained property values as the property is kept in good repair and appearance.
Cost savings of residential property management
There is always an opportunity cost when a person who owns a property uses their own time to manage the property. What is the owner’s time worth? Is he losing money by taking time to manage the property? A residential property management company are the experts at managing properties and can take the daily tasks of management off of an owner’s plate, thus voiding the opportunity cost.
Reduced repair costs
Most residential property management companies have established contracts with local repair businesses or their own repairman on hand (or at least on call). Whether it’s a damaged window or broken appliance, the maintenance staff will be available to help. This is a time savings to the property owner who is not left doing the maintenance himself or scrambling to find someone to hire. These individuals may be hired at a set rate and therefore be less expensive because they receive work from the property management company for several properties.
Reduced landscaping and lawn care costs
Properties managed by a residential property management association typically have certain standards about keeping the lawns mowed and the plants well tended. For the same reasons as repair work, property owners are often able to save money by having a property management company use their landscapers or contracted landscaping businesses to handle the work. These individuals may be hired at a set rate and therefore be less expensive because they receive work from the property management company for several properties.
Increased property value
Should a home owner ever decide to sell their home, they may benefit from the increased value that often accompanies properties managed by residential property managers. Since property managers screen tenants, the home is more likely to be rented to people who will care for your home. The yard, roof and siding will be in good shape, which adds to the curb appeal and value of the property.
If a property owner would like a home security system installed, he or she may benefit from the contracted rates provided by a residential property management firm. Additionally, some property management companies provide security staff in their Home Owners Association dues. Added security can help prevent the headache and losses that can come with a break-in.
There are many different ways that home owners can save money with the help of a residential property management company. A property owner must decide if foregoing the cost savings brought by a property manager is worth the cost savings of managing the property oneself.
Son-Rise Property Management is a full service property management company located in Bellingham, WA. Contact us today to see how we can help you find the perfect home to rent or manage your property.