Reason #1 to Hire a Professional Property Manager: Time

Happy Holidays Real Estate Investors!

We hope you had a Happy Thanksgiving and that you enjoyed tons of food and time with family!  Today we want to talk about one of the most important reasons to hire a professional property manager: The Value of Time.  We all know the saying “Time is Money” but have you really ever thought about how true this statement is?

Every minute of your day has a value on it.  From the moment you wake up, until the moment you go to bed and even every minute that you are asleep.  This is because if you are working you are earning money but every real estate investor knows that if you own property your property is earning money for you even when you are not working.  One of the most important reasons to invest in real estate is so that we can generate income while we are not working.
The mistake that most new real estate investors make is that they feel they need to manage their property themselves in order to make the most money possible off of their investment.  This is not true because when you consider the value of their time the cost for Professional Property Management is actually quite low.

The vast majority of reputable property management companies charge somewhere around 10% of the total monthly income of your property.  So for example if your tenants pay $1000 a month you would pay $100 to the property management company.  While this may seem like a lot at first, when you think of the value of your time it is actually very low.  Most investment property owners earn a few thousand dollars a month in normal income.  This means their hourly income is somewhere around $30-$50 an hour and could even be as high as $100 or more an hour.  So if you have to spend at least two hours in a month handling the vast number of tasks that managing a property requires then you have already lost more than the 10% that you are paying.

Of course there are cut rate property management companies that will charge less than 10% but these are probably people who are doing this part time as an additional revenue stream for their normal business so you will get part time service.

In property management as in life you get what you pay for, if you pay full price for professional work it will be done correctly.  Real Property Management Miami is a full service property management company that only works on managing your properties to the highest standard of excellence.  For more information contact us at 305-517-3900.