Updated June 7, 2022.
I know that probably sounds like a silly question to a lot of residential property owners; Philadelphia property management costs money—how can it save you money?
There is a lot to unpack concerning this assertion of rental property management services awesomeness—and we'll lay it out fully—but the main reasons are:
Let's take a look at each of these in-depth to see how an exceptional Philly property manager like Rentwell can save you money—plus, a lot of other important things (like sleep and sanity).
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A good business owner calculates the value of their time to ensure their business is reaping them the right rewards. Take, for example, that one crafty friend you know who is selling her hand-sewn, embroidered masks on Etsy. You might have laughed at her asking $20 for one and scrolled by—but did you consider the four hours it took to sew and embroider?
At that rate (minus materials), she is making less than $5 per hour to make them—and you start to see what a bargain it is. This is a fictional example, of course: crafters who make a living selling their wares instead of using it as a hobby would charge a lot more because they know the value of their time.
How much is an hour of your time worth? This is a question with a pretty complicated answer, but you can make a decently good estimate by looking at the wage you're willing to accept at a job and using that. Let's assume, for the sake of all that is math, that the total time you spend managing your investment each month is as follows:
You spend, on average, a minimum of three hours per month with a really good (and fictional) renter who is pretty handy and doesn't give you too much trouble.
If you make $50 per hour, you're spending $150 of your time each month to manage your property—plus whatever maintenance costs it takes to make those repairs or call in technicians or specialists. Apples to apples, you'll want to find a discount Philadelphia property management company, and you're set! Or are you?
What about property turns and leasing? Midnight phone calls? Are you willing to work for $50 an hour at three in the morning—or does that number get higher? What if your property is older and your renters put every last thing in as a work order? Do you have to call to collect?
Sometimes you don't get the perfect resident, and your month might look more like this:
Suddenly, this scenario is costing you $400 a month of your time—and even luxury Philadelphia property management companies are going to be a bargain.
True fact: Expert property managers have actually heard and seen it all by their third year. Otherwise, they probably bit the dust early—and that's not someone you want managing your rental property (or properties) anyway!
These Philly property pros know what to look for to avoid trouble when it comes to rental homes because they've developed the chops. They also know how to save you money on costly mistakes such as:
Overpaying for repairs and maintenance requests
Using vendors with a bad reputation
Renting to 'Professional Tenants'
Philadelphia property management companies manage a number of rentals—and thus, based on that college econ class you took five or six years ago, have fantastic systems in place to do it.
Are you working with an online renter or owner portal yet? You pretty much have to these days to collect rent on time and get paid. What does that cost? Are you allowing online maintenance requests and tracking or using an all-in-one property owner program? That probably runs as much as monthly property management costs alone when you only have a handful of properties.
Working with a professional Philly property management company means you get to benefit from all of the technology and service providers of the company—without the price tag for each benefit. Online ticketing and maintenance systems alone can be the reason your renter decides to stay five years instead of one year.
These are just three ways that working with a Philadelphia property management company can save you money. Unless you have the perfect 'unicorn renter,' you're probably better off taking the time you spend managing your rentals and spending it with your family—after all, that time is priceless.