Property Management Fees can seem straightforward at first glance.
However, focusing solely on the percentage is a massive mistake regarding property management fees. It’s tempting to compare companies side-by-side on fees alone and pick the lowest number. But that “bargain” fee will likely cost you more than paying the extra for a quality manager.
This is the sixth of seven key factors in a recent video titled “How to Choose the Right Property Manager.
Episode 16 – Fee Structure.
Landlord Tips a Game-Changer: Reduce Stress and Hassle, Increase Profits.
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TRANSCRIPT.
Focusing solely on the percentage is a massive mistake regarding property management fees. It’s tempting to compare companies side-by-side on fees alone and pick the lowest number. But that “bargain” fee will likely cost you more than paying the extra for a quality manager.
It’s not so much about your fee but the overall return at the end of the year. Property management isn’t just collecting rent. It’s maximising returns and protecting investments.
A skilled property manager who charges more will likely secure better tenants who stay longer, reducing vacancy costs. They’ll have stronger trade relationships and be proactive about rental increases and problem prevention. Because that is what you are paying for: results, right?
I’ve seen owners choose the cheapest option and end up stung; remember the saying “pay peanuts, you get monkeys”
When speaking with potential property managers, ask, “How will you maximise my property’s performance?” Look for specific strategies instead of vague promises, and review what is included in your fees along with any additional charges.
So remember, it’s false economy to think you’ll get the best value from the cheapest fees when it’s about who puts the most money in your pocket.
Your goal isn’t the cheapest management; it’s the highest return. Keep your eyes on that bottom line.
I hope that helps. We’ll catch you next time.
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