Why Shouldn’t You Hire a Property Management Firm?

I observe several For Rent By Owner signs on the lawns of unoccupied rental properties throughout my everyday activities of travelling around town looking at properties. When I see these signs, I’m struck by the fact that the owners haven’t asked themselves whether it’s really worth it.
I’m curious if the property owners have asked themselves the following questions: • Am I saving money by doing it myself?
• Am I capable of handling the responsibilities?
• Do I have all of the necessary tools, including applications, credit and background checks, leases, eviction documents, notices, and resources for repair and cleaning?
• Will doing it yourself save me money or will it end up costing me more?
I know firsthand how difficult and costly it is to manage rental property as a full-time professional property manager.
How did I come to this conclusion?
I have a unique perspective on the activities and costs connected with managing income properties because I do it for a living. My time is priceless! Why would you, as an income property owner, want to put in the work, time, and effort it takes to earn a few more dollars a year by renting a property yourself when you can hire a reputable business to do it for you?
To me, it’s a no-brainer. Isn’t your time more valuable than $10.00 per hour, $33.58 per month, or $403.00 per year for only one property? What exactly am I referring to? Let’s look at how I came up with these numbers… Let’s establish some ground rules and identify and define some words before we look at the costs of property management.Kindly visit Polaris Property Management, LLC to find more information.
Charges
Property management companies charge somewhere between 5-35 percent for their services, depending on the following factors:
• Services provided – concierge, housekeeping, etc. • Repair services – on staff or hired as needed
• Local market – Management fees in some places are more than in others. For example, in Los Angeles, California, long-term leases may be charged at a rate of 20-30%, however in my market area, the rate is significantly lower.
• Other considerations
In my location, property management services for mid- and long-term rentals cost about 10% of the monthly rent. To offset early setup costs, an additional first month’s rent fee is often charged.
Term of Lease
I categorise lease terms as follows:
• Rentals for a period of less than one month
• Short-term rentals (one to six months) • Long-term rentals (seven months to one year)
Renting variables in my market area are determined by various factors:
• The season – As a largely tourist-oriented area, we experience various tourist-oriented seasons during which our resident population expands.
• Military soldiers and their families are transferred in and out.
• The construction industry is growing.