Updated August 19, 2020
Buying an income property can be a worthwhile investment that provides a steady form of income for years to come. However, in order to find success and profitability with your rental home, you will need to invest into your investment. Regardless of whether you own a single-family or multi-unit home, rental properties require a significant amount of work, effort, and patience.
The amount of work, time, and effort needed to effectively manage a rental can be daunting, but investing in property management makes it possible for you to make a profit without the stress.
With the expertise of a local Northern Colorado property management company, you can make the most of your rental property.
Let's go ahead and dive into everything you need to know about hiring a property manager!
Although it does come at a cost, hiring a property manager can provide a wide variety of advantages that will quickly make that cost a worthwhile investment. Often times, the mere thought of what that cost could be deters property owners from even considering property management. By taking the time to research what a reputable local property manager charges and understanding the advantages and benefits that come from it, you can decide if property management is worth the cost.
What does hiring a property manager cost? It depends on a number of different factors, but on average property management costs between 5 and 15 percent of the monthly rent. Some companies will charge a flat monthly rate, while others charge a percentage rate. The exact cost will likely be dependent on a number of factors.
Each individual company has its own breakdown of fees with some choosing to charge a flat rate each month and others opting for a rate that is calculated on a percentage scale. The best way to determine the cost of hiring a property manager for your individual rental is to contact a company directly to request a property assessment and quote.
Property management fees are often calculated following an assessment of the property and the services needed. Again, some companies simply charge one flat monthly rate and others charge a percentage of the monthly rental value.
Factors that could influence the cost of hiring a property manager may include:
To many, the monthly expense of property management may seem unnecessary. It may also seem illogical to pay for services that you could perform on your own. However, keeping up with the responsibilities of managing a rental property can quickly become time-consuming and overwhelming, leaving you burnt out, tired, and preventing you from making the most of your investment property.
With help from a trusted property management company, you can hand over landlord responsibilities and simply enjoy the income your rental property brings in. As a property owner, you have a lengthy amount of obligations in order to keep the house and your tenants taken care of. Some of the many responsibilities landlords have to rental properties include:
All of the above responsibilities can take up a lot of your time, especially if you’re not knowledgeable about landlord/tenant laws or how to go about doing background checks and other tasks. Hiring a property manager for your rental property can alleviate some of the stress you’re under and give you more time to focus on other things.
Here are a few of the tasks property managers can handle and why they’re good at doing them:
Now that you have an idea of the benefits of hiring a property manager, should you? Here are a few reasons the answer should be yes.
Now that you can see what these professionals can do for you, look back at the question of what does hiring a property manager cost. Even at the higher end of the scale, a property manager takes over so many duties that they are well worth the cost.
If you’ve decided that hiring a property manager for your rental property in Fort Collins is the right move, you may be wondering what you should do to prepare your rental. The rental market across Northern Colorado is highly competitive, making it very important to do what you can to prepare your property for success.
Presenting your property in rent-ready condition will make it easier for your property manager to establish a fair rental price, create an effective listing, and fill the vacancy as quickly as possible. To help you get your rental ready for property management, here is a list of 12 actions to take to prepare your home and make it more desirable for tenants.
To get the most out of your investment, you must be sure that the property is in the best condition possible for your tenants. Take the time to go through the house and carefully inspect it, looking for any repairs or maintenance needed.
You might even consider hiring a professional home inspector who can offer you a comprehensive assessment of the condition of the property and provide you with a concrete list of concerns that should be addressed.
Be quick to address any potential, developing, or existing problems in the home. Whether it is a leaky faucet, burned-out light bulbs, a hole in the wall, or appliances that aren’t working properly, make sure that repairs are done as soon as possible and that they are done well.
Air filters are extremely important for the efficiency of the heating and cooling, but they also play a crucial role in maintaining the indoor air quality of the home. Before you rent your home out to new tenants, make sure to change air filters to prevent problems down the road.
Whether this is the first time you’re renting your home, or you’ve had previous tenants, change the locks on all doors and reset any garage codes. This provides tenants with peace of mind and reassurance that their home is safe.
Over time, carpet can accumulate a significant amount of dirt, germs, and allergens, which can affect the appearance of your floors, while also affecting how the home smells. For the best results, hire a professional carpet cleaning company to revive dingy carpeting.
Paint is one of the most effective ways to transform or update the look of a home. To make your rental more aesthetically appealing, have the interior of the house uniformly repainted in a neutral color. A fresh coat of paint in a neutral color will revive tired and worn walls and provide a backdrop that makes it easier for potential tenants to envision their belongings in the home.
One of the biggest turn-offs for a potential renter is a dirty house. No one wants to move into a house that is dusty, grimy, dirty, stained, or covered in cobwebs. Whether you hire a professional house cleaning company or do the work yourself, make sure that the house is thoroughly cleaned from floor to ceiling.
Make sure that every window and door in the home is sealed, locks properly, and has screens that are in good condition. This adds safety to the property, while also helping to prevent loss of heat or cool air and avoid potential problems with pests.
Although it isn’t necessary, investing in newer fixtures or appliances can add value to the home and increase what you can ask for in rent. It should also help you avoid the cost of repairs down the road.
The backyard is an important feature for many potential tenants, while the front yard provides the first impression of the home. Take the time to mow the grass, pull weeds, refill mulch, fix sprinkler heads, trim branches, and any other actions needed to spruce up the appearance of your outdoor space.
Be sure that you contact both your mortgage and home insurance companies and notify them that you will be renting the home. You can adjust your insurance policy to a landlord specific one that will cover the condition of the home in the event of a disaster as well as cover loss or damage related to tenant negligence.
As you set out on your new business venture, take a moment to gather advice from those with extensive experience in the industry. A property management company, such as All Property Services, can provide you with key advice and tips to best prepare your rental.
All Property Services, Inc offers professional and reputable property management for Fort Collins, Loveland, Greeley, Windsor, and surrounding areas. Since 1986, we have specialized in providing superior property management services including administration and maintenance. Call us today to learn more about our rates and how we can help you make the most of your income property. We offer the highest level of service for property management in Northern Colorado.