There's a common misconception amongst people owning rental properties that a property manager is basically a receptionist for your business. They're there to answer the phone for tenants, field maintenance requests, and keep the lights on. But when it comes to day-to-day operations and big decisions, they're going to need owner involvement frequently.
We call this approach to property management a "co-management" approach. It's the traditional way this is done, with the landlord needing to be involved on a near-daily basis. However, it doesn't have to be this way.
At Advantage Property Management Services, our owner Russ Cowley knew there had to be a better way. He had been on the receiving end of property management companies who co-managed his rental properties. Time and time again, this led to poor communication, subpar documentation, and a need for owner involvement daily.
But what does it mean for a property management company to be "full-service"? What's the difference in a traditional co-management approach? And how can you spot the difference?
What is a Full-Service Property Management Company?
If you do a Google search of property management companies in your local area, you'll probably notice a few similarities. One of the most common of these is almost every property management company is going to advertise itself as "full-service."
But what does that mean? Well, when a property management company is truly taking a full-service approach, it means they take over every aspect of running the rental property for you. It's a comprehensive service where the owner steps away to simply focus on their rental income and building their investment. Meanwhile, all the nitty-gritty of the operation is handled by their property manager.
This is what a good property manager is supposed to do for you. They manage fully while you collect passive income from your rental.
The Benefits of Full-Service
With the right property manager on your side, the money you spend on management services becomes an investment in itself. With dedicated experts on your side full-time, not only do you gain freedom in your time by being freed from management duties, but you'll also garner increased rental income stability.
A full-service property management company handles everything for you without you needing to step in, including:
Property Marketing
Tenant screening and fair housing adherence
Drafting lease agreements and ensuring legal compliance
Collecting rent from tenants on time, every time
Ensuring proactive and responsive maintenance solutions
Thorough rental property accounting with diligent documentation made available to you
Co-Management: A Hybrid Approach
Full-service is a popular tagline for residential property managers to use, but many of them don't end up living up to this mantra. They say they'll take everything off of the plates of property owners, but end up needing your involvement more than you would like once the contract is signed.
In reality, these property managers are co-managing the rental with their property owners. This is more akin to a receptionist or secretary, and where the misconception in the industry comes from.
While this can be seen as good for an owner who wants to be heavily involved with their property, you end up with a "too many cooks" dilemma. Property managers should be the experts in the field, and when you have two different parties influencing decisions, you end up with a mixed approach that can't deliver optimal results
Property Management Services with Owner Involvement
With a co-management approach, the need arises for the owner to be called upon for every daily decision that comes up. If a maintenance issue arises, tenants need to be screened, or a tenant dispute happens, the owner will be called in.
At that point, the property manager is functioning as an assistant and the owner is the one really doing the managing. You pay property management fees to a property manager in order to increase the profitability of your property and save you time, not act as a middleman.
The Differences Between Full-Service Property Management Companies and Co-Managers
With a good property management company on your side, you won't have to be on your property or on the phone about your tenants every other day. Instead, you'll be able to focus on your other business goals and investments while resting easily that your rental is in good hands.
This is how you work towards achieving true financial freedom. If you're having to spend a bunch of time managing your rental investment, you're not getting actual passive income from it.
This also gives you time back for your own personal interests, family, and friends. But the business relationship goes beyond just simple convenience.
The Role of a Property Manager
Consider your budget, goals, and priorities. Investing in rental real estate already takes significant time to achieve a decent cash flow. Can you really afford to sink even more money into a property manager who's just going to answer phone calls for you and not actively improve the business?
In the same vein, can you afford to manage it yourself and take years longer to build your rental income to where you want it to be? That is the role that property managers should be playing. Improving upon the financial viability of your investment while also giving you your time back.
How to Find "True Full Service Property Management"
With all that being said, if so many property managers advertise full-service without actually delivering it, how can you find the right property manager?
That takes thorough research into local property management and thoughtful consultation with the candidates you have in mind. Don't just bite on the first one you see with good reviews. Take the time to consult with multiple candidates and ask questions on what their day-to-day processes look like, especially with how it pertains to owner involvement.
You can learn more about how to develop buying criteria for property management on our blog.
Making the Decision: What's Right for You?
At Advantage Property Management Services, we know the frustrations of dealing with a co-manager. That's why we started our property management business with the goal of changing how property management is done.
We focus solely on property management, no real estate sales on the side here. Our team is fully devoted to taking care of your property on your behalf so you can be freed from landlord responsibilities. That's the way it should be, and that's the way you deserve property management to be done.
If you're in search of a true full-service experience in a property management team, reach out today to schedule a free consultation with our dedicated team.
