532 landlords sat down to fill out the survey. One by one, they started telling similar stories. Many had tenants ask to break a lease early. Others had to evict tenants. Some had a tenant suddenly stop paying rent altogether.
Only 60 lucky souls didn’t feel stressed out about their rental properties.
“I’m dealing with a lot of stress…” Jayden, an owner of 3 rental properties admitted on a landlord forum. “I’m on my own with no experience and trying to manage and learn every aspect myself.”
He has a good question: “How can I reduce this stress I’m taking on with the least cost possible?”
As the answers rolled in, Jayden kept seeing the same advice over and over. “Hire a property manager,” “Find a good property management company,” “Offload on a qualified property manager.”
If you’re new to real estate, these answers might give you pause. Your goal is to make money, so handing over a stack of cash each month to a property manager might sound like a big step in the wrong direction. But in reality, a property manager can simplify your life, improve your investment properties, and maximize profitability.
Today, we’ll look at how much Austin property managers cost, what they offer, and how to find the right management company.
How Much Do Property Managers Cost?
Here in Austin, Texas, the average property management fee for rental properties is between 8% and 15% of the monthly rent collected. That’s a lot less than most people would expect, especially once they realize how much work property managers take off their plates.
In addition to the monthly management fee, some companies also charge a:
- Startup Fee: Many property managers will charge an initial flat fee at the start of your contract. This usually costs a few hundred dollars.
- Advertising Fee: Some property managers charge additional fees to cover the cost of creating content to market your properties.
- Leasing Fee: This is what’s charged to recruit and fill your unit with a tenant.
- Lease Renewal Fee: When a lease is renewed, some property managers will charge you a fixed amount or a rental percentage.
- Eviction Fees: Evictions are messy, but property managers handle them. Some don’t charge any additional fees, while others may charge a few hundred dollars for this process.
Are Property Managers Worth This Price?
Many landlords think that property managers only offer basic services to maintain their rental properties. Once you look at the list of responsibilities property managers take off your to-do list, however, you’ll wonder how they charge so little.
Property managers oversee the daily tasks of managing a rental property. They set rates, screen tenants, and collect rent and deposits. They cover the maintenance services for the property, monitor tenants to ensure they comply with the lease agreement, and address any tenant issues that come up.
These companies know local law too. They stay up to date so that you don’t have to worry about current housing regulations. Most property management companies also offer marketing and showings for vacant rental property units to entice the best tenants.
Some property managers are even accredited as real estate agents. If this is the case, they may also find the best vacant property for you to invest in, oversee the inspection of that property, negotiate deals, manage financing, and finalize the purchase agreements.
With a property management team on your side, you become the CEO of your real estate investments. You make the decisions and reap the biggest profits while the property managers do the groundwork for you.
How to Find the Right Property Management Company
Finding the right team to manage your properties is crucial. The best companies will maximize occupancy rate and rent collection and make sure all maintenance requests are taken care of.
These five steps can lead you in the right direction:
- Start With a List
A simple but effective strategy you can use to find the right property management team is to look online. Search for “property managers near me” to find a starting list.
- Find Testimonials
Read reviews to see whether the company is reliable, professional, experienced, communicative, and effective.
- Do a Drive By
Before you hire a property management company, you can also visit a few of the properties they manage and assess their condition. Do they look well-maintained or neglected?
- Compare Costs
Some companies may charge 8% of the monthly rent, while others may charge 15%. This can be for a multitude of reasons—some might charge a lower management fee in exchange for a higher leasing fee, or they may have additional fees for setup and renewal. Take a look at all of these factors when making a decision.
- Interview Multiple Candidates
And don’t worry, we’ve already written your interview for you! Here are 32 important questions to ask a company before hiring them to manage your important properties.
Offload Your Landlord Stress
When you find a committed and qualified company to take the hardest jobs off your plate, you’ll start to see that a stress-free life as a landlord is possible.
Are you ready to start building your wealth without burning out? Let’s talk. We’d love to hear all about your Austin property and help you manage your investments hands-free.