Property management is starting to become more and more well known throughout Riverside and the surrounding areas. Every year, more and more landlords are starting to look into property management and seeing what they have to offer. The question for today is, are they worth the price investment they come with?
What is Property Management?
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Most Property Management Companies in Riverside and the surrounding areas provide what is known as “Full Service Property Management”. What this means is that the property management company handles nearly every aspect of the property. This includes:
Tenant Screening
Marketing of the Rental Property
Rent Collection Using Online Software (Rentvine, Appfolio, Etc)
Legal Compliance & Risk Management
Maximized Rental Income through Professional Experience
Maintenance Coordination
As someone who has been in the property management field for a good amount of time, I can confidently say that property management is convenient to those who may not want to deal with the day-to-day processes of owning and self-managing a property, however, all these services must come with a price.
How Much Does Property Management Cost?
Riverside, as well as California in general, is on the more expensive side when it comes to property management (as everything else is…), my research shows that most companies are at the 8-10% range when it comes to monthly fees (this is 8-10% of the rent per month), with different leasing fees, maintenance coordination fees, and even some companies having set up fees as well. To learn more about what property management companies charge in Riverside, visit this blog that I wrote.
While I will say that there are definitely some pricey companies out there, the most important fees to look at are the monthly fees as well as the ancillary/extra fees. If you are curious about what we (PMI Riverside) charge, feel free to go to our pricing page.
Is Property Management Worth it?
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Obviously, as someone who literally works at a property management company, I am going to say yes. However, I will say that there are some times where property management is actually not worth it.
If you are someone who struggles with giving up control of things, property management may not be for you. In order for property management companies to succeed, they need to have a certain level of control of your property.
If you live close to the rental property and you have no issues with talking to tenants.
If you are someone who lives close to the rental property and has the ability to complete repairs on your own, in a timely manner, while doing good work.
If any of these examples sounds like something you fall upon, it may be a better idea to have the property management company find you a tenant. This is what we call a Lease Listing Agreement. It is perfect for any landlord who is looking to find a great tenant, but doesn’t want to pay for property management fees when they don’t really need property management. If you would like to learn more about our pricing for Lease Listing Agreements, click here.
When is Property Management beneficial? Well, it is almost always the most beneficial to two certain groups of landlords.
The First Group: Landlords who live far away from their properties
Landlords who live far away simply don’t have the ability to efficiently & effectively manage their rental property. Most times, they will have to spend a majority of their time traveling to the home when they instead could be worrying about other things like family, work, or social life.
The Second Group: Inexperienced or “Accidental” Landlords
Accidental Landlords is the term used to describe someone who did not invest in real estate, but rather inherited or received a rental property through various means. Someone in this group is at risk of lawsuits, bad financial investments, or not knowing how to manage their property in an effective manner.
To find out more about whether or not property management is worth it I highly recommend you visit the BiggerPockets post done on the Pros and Cons of Property Management.
Can Our Company Help You?
PMI Riverside has been massively beneficial for a lot of different owners in the past 13 years. Our company has amassed a brand of 5 star service, with a promise to help create an environment where both owners and tenants succeed.
If you would like to learn more or perhaps join the list of owners that we have helped, I would be more than happy to give you a free consultation. All you need to do is click this link and schedule a meeting with me.
