You may be wondering what it costs to hire a Richmond property management company and if it’s really worth the extra expense. Let’s first address the latter part of that sentence. Deciding whether a property management company is worth it depends a lot on your circumstances.
If being a landlord is your full-time job and you have one property, you may find it easy enough to keep up with everything. However, keep in mind, you’ll also need to work with a lawyer and accountant to ensure you’re handling everything correctly. On the other hand, if you have a lot on your plate and you’re unfamiliar with rental legalities or accounting responsibilities, property management can be a huge bonus.
Richmond property management can help your bottom line
Even though property management comes with some extra expenses, it can actually save you money in the long run here in Richmond. This is because everything property management companies can offer is designed to help you keep your occupancy rate up.
Vacancies can be expensive. But, with a successful Richmond property management company in your corner, you can drastically cut down these vacancies. Many property management companies work hard to screen tenants thoroughly in order to find residents that are likely to pay their rent on time and even stick around for longer.
Property management companies can also handle maintenance problems and other communications, keeping tenants happy. When you hire a Richmond property management company, it can actually end up earning you more money over the course of time. Also, keep in mind, you can typically write off management fees on your taxes.
Expenses are dictated by a number of considerations
Property management companies consider many factors when determining cost. Almost every company has a different pricing structure. Some of the things that go into calculating the expenses are the size of the unit, how many units you own, if it’s commercial or residential, what the condition of the property is in and where the unit is located.
Although some companies charge an initial fee of around $500 to start up with them, we do not. We simply charge a 10% management fee, with discounts for owners with multiple properties. If you operate multiple units, our price drops to 8%, providing more revenue for you, the investor.
Additional property management expenses to keep in mind
When it comes to property management, there are unforeseeable circumstances to consider. Perhaps a water line breaks. Perhaps the wind uproots a tree. Perhaps a leak appears in the roof. As a property owner, these are expenses that should be considered. A property management company will rally together resources to get those problems fixed, removing the headaches that come with coordinating an emergency response, but the property owner must ultimately shoulder the expense.
Property owners should also consider the cost of changing tenants. A property management company will work to keep tenants in your home. Each time a tenant changes, expect a flat fee of $750 to cover the logistics and marketing that come with finding someone new to occupy your property.
There’s a lot involved in bringing on a new tenant, including the screening process, paying someone to show the property, marketing the property and getting the lease papers ready. A leasing fee helps the property manager do their job efficiently. Additionally, many property management companies charge fees for processing evictions and for vacancies.
Don’t just look at the price, look at what they’re offering
When you’re comparing Richmond property management companies it’s important to look at the details. Don’t just consider the immediate costs. Get the breakdown of all of the fees and what all of this means.
What do these expenses cover? You don’t want to pick a property management company strictly based on the ticket price. You need to know what exactly they’re offering for the price they’ve set. You could end up paying very little or too much for not enough. It’s important to find the property management company offering a ticket price that compares with the quality of services they provide.
And this is what has made PMI a national name in the property management industry. Our brand promise is to deliver high-quality services that include honesty and integrity; accurate accounting, effective communication and availability of management.
Our pricing structure is simplified and month to month
At PMI Richmond, we have a simple pricing structure to make it easy for the landlords we partner with. We charge 10% of the collected rent. We charge a discounted 8% for investors who have multiple properties. There’s also a flat lease fee, which as we mentioned above, covers the costs of finding tenants for your property.
Not only is our pricing structure simplified, but we also offer our pricing month to month. Many property management companies require a one-year contract. This doesn’t allow you to test run the company to see how you like them. Also, if you try to break that contract, you’ll most likely end up having to pay additional fees.
Thankfully, with the contract that we offer, you can find out how much you like partnering with us after a month and then decide if you want to keep going. It’s also an incentive for our company to continue serving you well every month in order to continue earning your business. If you’d like to learn more about us and what we can offer, please visit our website or give us a call.
