Let's talk about the hidden costs of hiring a bad San Ramon property management company, shall we? Choosing a good property manager has an impact on the amount of income you’re able to make on your rental property. When you choose a bad San Ramon property management company, you will be stuck with hidden costs and expenses that translate into lost rental income and lower returns on your investment. There are some easy ways to separate the good managers from the bad managers.
Tenant Screening
Tenant screening is the most important part of maximizing the profit on your property. Look for a property manager with a very refined screening process. A bad tenant will cost you a lot of money in damages, unpaid rent and potential eviction. There will also be the costs of turning over the property and finding a better tenant. Use a property manager with a refined and defined screening process.
Turnovers
Turning over the property between tenants is a huge expense for property owners. It results in a vacancy which creates lost rent, and then there are maintenance costs and the expenses of leasing to a new tenant. Great property managers should be turning your property within seven days or less. Fast turnover minimizes downtime and gets a new tenant in, which minimizes your rent loss. Bad managers will take their time with property turnovers, and three or four weeks will pass before the property is even prepared for the next tenant. Every day that passes is money out of your pocket, so you need a property manager who moves quickly.
San Ramon Property Management Marketing
There must be a clear process for responding to inquiries instantly and scheduling showings. Then, you need a clear process to convert those interested parties into applications and signed leases. Bad managers won’t have a marketing process in place at all, and it will take them days to respond to phone calls and emails. Great managers do things very quickly.
Repair Costs
Every manager has vendors they like to use when repairs are required at the property. But not all vendors are equal in terms of services and costs. A great manager has a stable of excellent vendors who provide discounts that can be passed on to you. For example, some plumbers charge $90 an hour and others charge $150 an hour. A great manager will use a high quality plumber at $90 an hour and a bad manager might choose the more expensive plumber. Flooring is also a huge expense when you have to re-carpet. If your management company uses a vendor who charges $1.80 a square foot versus the same carpet at $2.25 a square foot, you’re saving money.
These are some of the hidden costs of hiring a bad San Ramon property management company. Spend some time interviewing so you can find a manager who puts more money in your pocket and exceeds the cost of their management fees. If you have any questions, please contact us at Advantage Property Management Services.
