Hiring a property management company can be a big expense, especially in the short term. It can also save you money in the long run. Whether your Chicago real estate management company will end up in the expense column or saving more than it cost depends on your unique circumstances, which services you use, and the quality of the management team.
Savings on Day to Day Operations with Property Management
If you have good tenants, a property in good repair, and you live nearby, you may not feel the need for a property management company. But when you live out of town, lose a tenant, and the property needs repairs, your accredited property manager becomes an important asset. He can quickly get the repairs done, find a quality tenant, and keep you up to date over the phone.
You would have lost days traveling back and forth, possibly overspent on costly repairs, and lost time and money looking for a new tenant. Accredited property managers do this every day and they do it well. They have the staff and experience to take care of problems quickly and efficiently at a very reasonable cost.
Hiring an Accredited Property Manager Can Save you Money in the Following Ways:
- Finding quality tenants, checking background reports and references
- Managing turnovers so the property is kept rented
- Managing the rent collections so that late payments and evictions are rare
- Lower maintenance costs
- Increasing the value of your property through preventative maintenance and keeping rates current
If you are building, remodeling, or adding on to a commercial property, hiring a good construction management specialist is an excellent idea. Chicago commercial real estate management companies can save you money by actively supervising the work and representing you on-site.
Cost Savings on Maintenance and Repairs
Maintenance and repairs are one of your biggest categories of expenses on a rental property. It can be a constant hassle for most landlords, but good Chicago commercial real estate management companies solve the problem by having staff on standby to take care of any problems that arise. These handymen have the experience to get the job done efficiently and inexpensively.
Consider a situation with a leaky faucet. If you don’t have the time or ability to fix it yourself, you might have to hire an expensive plumber. A good property manager will have a qualified handyman on staff to get it done at a rate far below the plumber’s hourly fee and without the hassle of dealing with unknown contractors.
In the event you do need the services of an outside professional, your property manager has relationships with reputable contractors and can expect the best rates. You don’t need to worry about finding someone you can trust or whether the contractor will do a good job. Your property manager will oversee the work and make sure it is done in a timely manner.
Potential for Increased Costs when Using a Poor Real Estate Management Company
There are a variety of fees and costs of doing business with a property management firm. Your total cost will depend on the type of services that you are receiving and whether you pay a flat rate fee or a percentage of gross receipts on the property. If your management company does a good job for you, the property will be well taken care of and your costs will be reasonable.
If you choose the wrong real estate management company, problems could increase along with your costs. When hiring commercial real estate management companies, check their reputation and references. If you choose the wrong property manager, expect to see your costs rise.
Problems with Poor Management or Lack of Attention
When you manage your own property, you may not have the experience or resources to provide the best management. This is understandable and could be prevented by hiring a good property management company.
The same situation can also happen when you hire the wrong management company. A poor management company can increase your costs and problems in many ways. Problems happen, but if you are experiencing repeated problems and they are costing you time and money, consider whether they could have been prevented by a more experienced property manager.
These problems are usually caused by poor property management:
- High turnover rates and loss of rent
- Longer than average time to find new tenants
- Poor quality tenants, late rents, evictions, and property damages
- Poor relationships with tenants
- High repair bills
- Lack of inspections and preventative maintenance
- Poor communication with tenants and/or with you
- Legal problems that could have been avoided
A good accredited property manager is a valuable asset to your rental properties. While hiring a good real estate management team may seem expensive initially, their professional expertise can save you money, time, and personal frustrations.
GNP Realty Partners is Committed to Your Success
At GNP Realty Partners we are committed to providing the highest quality of service to our clients. We have the first-hand experience with Chicago property management. If you are looking for a hard-working, dedicated team of professionals with the knowledge to handle your properties, GNP Realty Partners would like to show you how we can help.