The heading of this post is a strong statement, especially for all Property Management Companies in Corona and the surrounding area, but it is not intended to merely sensationalize for the purpose of getting you to read it. As an owner of a property management company, and an owner of rental properties, I am convinced that the emphasis placed on a management companies fees is entirely misplaced.
Consider this scenario. Property management company A manages a property in Corona and charges $100 per month. The property manager places a tenant paying $2,000 per month, which nets the Corona property owner $1,900 per month. Property management company B manages another similar Corona property and charges $150 per month. This manager however gets a quality tenant who pays $2,100 per month, netting the owner $1,950. This simple illustration reflects that the fee charged by the property management company is irrelevant to the amount of money the owner actually puts in her pocket each month.
Now consider the cost of selecting the wrong tenant. A bad tenant can cost thousands of dollars in damage to the property. These costs can be unexpected and often come at the worst time. A good property management company will have stringent screening methods and criteria. They will also have quality vendors dedicated to ensuring that the property management company that uses them is happy with their work, and pricing.
When you are comparing property management companies, don’t just ask what they charge. Focus instead on what you will actually net with them managing your property. Fortunately most areas have several options when it comes to property management. Ask the company you are considering using how they screen tenants, what arrangements do they have with their vendors, how often do their clients have to evict a tenant? Of course what the property management company charges is a question worth asking, but use it as a variable in your calculation to determine your best financial choice. You should also consider whether the property management company is in close proximity to your property. It’s important that they know the area, and are able to promptly address onsite issues. If your rental property is in Corona, your property management company should also be in Corona.
Comparing property management fees alone won’t be of use in your quest to find the best property management company for your needs. Cheaper is not always better, in fact it almost never is.
This Post is a Featured Post written by Nathan Fransen Esq. Broker Signature Sales & Management