How important is Property Management to a success of a property

Property Management is the big part of income real estate a lot of investors really do not put enough thought into. We literally get at least 10 calls a week from investors having property management issues. Why is that happening and how do you avoid it?

Most managers including my wife's property management charge between 8%-10% per month to manage a property. Let's say for example rent is $1000 a month, that means that the property management will receive $80-$100 a month to manage that property.

Management takes all the phone calls and deals with the tenants during the management period. There are a lot of issues that can come up and communication is the most crucial part of managing a property. That is all handled by your property management.

My wife was telling me just a few days ago about a property we just started managing. The tenant had a pool they had put up in the common area and never cleaned. The water was green and the bugs where plenty. This tenant also complained of bugs being in their place. Lori had the tenant remove the pool and everything was good after that. Simple solution and it got the other 5 tenants happy and paying their rent.

Tenants sometimes have minor issues that need addressed and that is where the communication comes in. It is especially important in the higher rent areas. The higher rent tenants usually take better care of their home and have higher incomes. When those tenants call it is usually a minor issue that can be handled over the phone. That keeps tenants happy and paying their rent.

When there is no communication from the property management, these type of tenants can go bad quickly. They are paying the top rents and getting no attention. That is why good property management can make or break you.

Investors sometime go cheap on property management and that usually cost them a lot of money. Every property needs maintenance and repairs from time to time. The key is keeping the property healthy and income producing.

As an investor do not look for the cheapest property management in town look for the BEST! That will usually keep your property producing higher income and building your equity in the home.

Need good property management? Call Lori 440-695-3379 https://www.facebook.com/Avalon-Group-Realty      

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