Investing in Real Estate? The Case for Professional Property Management

Investing in Real Estate? The Case for Professional Property Management

Investing in Real Estate? The Case for Professional Property Management

By: Andrea Faulk

Real estate investment is often heralded as an excellent avenue for generating passive income. However, the reality of being a landlord can quickly turn that “passive” income into an active and demanding endeavor. Managing properties involves a multitude of tasks that can be both time-consuming and stressful. This is where a professional property management company can become an invaluable asset for investors.

Here’s a deeper look into why experienced investors often choose to partner with property management experts:

1. Expertise and Efficiency for Optimal Returns

  • Tenant Screening and Placement: Finding reliable tenants is crucial. Property management companies use comprehensive screening processes, including background and credit checks, employment verification, and rental history evaluations, to ensure quality residents occupy your property.

  • Optimal Rental Pricing: Setting the right rent requires a delicate balance. Property management companies conduct thorough market analyses to competitively price rentals, maximizing income while minimizing vacancies.

  • Effective Marketing: Ensure that marketing reaches the right audience to successfully fill vacancies with the ideal candidates.

2. Time Savings and Stress Reduction

  • Delegating Day-to-Day Operations: Managing a property can feel like a second full-time job. A property management company handles everything from maintenance calls to rent collection, freeing up your time for other ventures.

  • Streamlined Processes: Property management companies establish efficient systems for rent collection, maintenance requests, and accounting. They often offer online portals for tenant payments and financial reporting.

  • Peace of Mind: Knowing professionals are handling all aspects of your investment offers peace of mind, allowing you to enjoy ownership benefits without the headaches.

3. Protecting Your Investment and Minimizing Risks

  • Legal Compliance: Landlord-tenant laws are complex and ever-changing. Property management companies stay informed on legal requirements, ensuring compliance and reducing the risk of costly lawsuits or penalties.

  • Preventive Maintenance: Regular inspections and proactive maintenance are vital for preserving property value. Property management companies schedule routine maintenance and address repairs promptly, often with access to discounted contractor rates.

  • Dealing with Difficult Situations: Property management companies have the experience to handle challenging situations like late rent payments or evictions, minimizing financial losses and emotional strain.

4. Enhanced Tenant Retention and Satisfaction

  • Prompt Responses to Needs: Quick response to tenant concerns and maintenance requests leads to higher tenant satisfaction and retention, reducing turnover and vacancies.

  • Improved Tenant Relations: Professional and consistent tenant interactions foster positive relationships, leading to longer tenancies and a stable income stream.

In summary, although self-management may seem like a cost-effective option, the time investment, legal liabilities, and risk of expensive errors can outweigh any perceived financial benefits. Engaging a professional property management company enables you to utilize their expertise, enhance operational efficiency, safeguard your investment, and optimize your returns, all while enjoying a more passive income stream. A property management company can truly become your most valuable asset.

If you need help managing your property, that’s what we’re here for! Please reach out to us at 1-800-963-1280 or at monroeville@arbors.com.

What Kind of Fees Can I Expect From Arbors Management?

What Kind of Fees Can I Expect From Arbors Management?

What Kind of Fees Can I Expect From Arbors Management?

Every property management company has a different way of working and a different way of charging management fees. 

For example, you might hire a management company that charges one flat rate, or you might find a property manager who charges separately for every service that’s performed.

At Arbors Management, we have three all-inclusive fees. We do not like to piecemeal our costs, and we don’t have an upcharge on our maintenance services.

Today, we’re talking about our three fees upfront and what all you can expect when you work with us. 

These fees are also similar to many of the fee structures you’ll find with property management companies in and around Pittsburgh.

 

Leasing Fees in Pittsburgh

Our leasing fee is the equivalent of one month’s rent, meaning the first month of rent that we collect for you will pay for our leasing services. It’s a one-time fee that’s paid at the beginning of the lease.

This fee covers everything involved in finding and placing a great resident, including:

  • Marketing your property
  • Showing your property
  • Rent pricing
  • Preparing the property for rent 

We’ll also handle the application process and screen each resident thoroughly and in compliance with the fair housing laws.

Once we’ve approved a resident, we’ll take care of:

  • Collecting the move-in funds
  • Conducting a move-in inspection of the property to document its condition
  • Executing the lease agreement

 

Management Fees in Pittsburgh

Then, you’ll have the monthly management fee, which is typically 9 percent of your monthly rent. 

The management fee can differ depending on a few different factors: 

  • How many units the property has
  • If we will need to employ onsite staff
  • How many total properties we’re managing for you
  • How much those homes are earning
  • The neighborhoods in which those homes are located 

Your management fee will come directly out of the rent we collect from the residents. It includes everything that’s covered in our management services, from lease enforcement to inspections to maintenance. 

The management fee also covers:

  • Our resident and vendor communication
  • Any notices that need to be served
  • Our accounting and bookkeeping
  • The portals we provide for residents and owners

 

Lease Renewal Fees in Pittsburgh

Our final fee is a renewal fee, which is a flat $250 charge that you’ll pay each time we renew a resident. 

When you think about the cost of resident turnover and vacancies, it’s easy to see what a value $250 is. 

We’ll work hard to retain your residents, and the renewal fee will cover our negotiation and signing of the new lease. It costs you a lot less than it would if you were paying a new leasing fee.

 

In Conclusion…

There is no single right way to charge management fees, but the most important thing is that the company you’re working with is transparent and honest. 

The last thing you need as an owner and investor is to be surprised by extra charges, and it’s important to review your management agreement before you sign it.

Contact us at Arbors Management if you’d like to know more about our services and their costs. Our Portfolio Managers and Leasing Specialists would be happy to provide a personalized quote that’s based on your property and its unique needs!