After working with hundreds of rental property owners, we’ve analyzed the whole spectrum of property management schemes that people and businesses are using to keep their units occupied, well-maintained, compliant, and profitable. These include:
Full-Service Property Management - The property owner hires a property management company, which then provides marketing, screening and leasing, rent collection, repairs and maintenance, government compliance and evictions. Pre-Covid, these services normally cost 8% of rent collected. Post-Covid, due to increases in fuel costs, labor, materials, and compliance, these services now typically cost between 10-12% of rent collected - depending on the type and location of the property. There are significant pro's and con's to this that need to be considered in detail, and we can help.
Hybrid Property Management - Some owners want to control repairs and maintenance, and have their property manager only handle rent collection and leasing. Other owners want total control over screening and leasing, but don’t want to bother with repairs and maintenance. Most property management companies are not interested in this scenario, for obvious reasons. If they can’t be in control of screening and leasing, then they don’t want to be held accountable for late rent payments or tenant damages. If they can’t be in control of repairs and maintenance, they don’t want to be the ones who have to answer angry tenant phone calls and complaints. We can help solve this problem!
Self Management - Lots of owners do this successfully, but if growing the portfolio is part of the plan, this soon becomes unrealistic. What started as a dream about passive income quickly becomes a nightmare of tenant complaints, missed or failed inspections, rents that are below market - all things that keep the overall property value from increasing the way it should.
We Offer A Smarter Way
Many property owners only think of monthly cash-flow and quarterly or annual profit and loss when they consider “success” or “failure.” But this misses the biggest potential money-maker: strategically growing the value of your property and then periodically taking a cash-out re-fi - which can be put back into that property or used to buy the next one.
Why? Put simply, margins are too thin and too many things can (and probably will) go wrong to pin your “success” on making $100 or $200 per month “profit” based on rental income MINUS repairs and maintenance + other expenses. Of course, depending on the type of property and size of the portfolio, owners can make a considerable sum on monthly cash flow that exceeds expenses. But, in the earlier stages of building a portfolio, when updates are needed to justify increased rents and better tenants, the thing to keep in mind is that the overall VALUE of the property can (and should) be increased through prudent management.
How Can We Help?
Rent Ready Systems offers both traditional property management AND flexible "assist" plans that enable you to get the most out of third-party property management, help to self-manage successfully, OR shift to a customized suite of services designed specifically for your portfolio and goals.
Start with our Rent Ready Analysis, a thorough report on market rents, likely repairs and maintenance costs, government compliance requirements, etc. We start you off with a plan for success that you can implement. Then, you can choose the level of ongoing support you want - a 30 or 60 minute call or Zoom each week, email support, and a shared spreadsheet to coordinate, track and manage every aspect of your rental property. Or have us provide full-service management that leads to measurably better ROI.
The Rent Ready Analysis costs $500 for a single family home, $750 for a duplex or four-plex, or $100 per unit for larger multi-family properties. Unique situations and scenarios will be priced individually. This analysis includes a customized spreadsheet that covers every aspect of ongoing management that you will need to stay on top of.
For self-management assistance, or focused engagement for a specific time frame with specific goals, our Rent Ready Assist plans give you the assurance that you have an experienced, connected advisor to consult with every step of the way.
Licensed professionals with the specialized experience and credentials
to improve the performance of your real estate portfolio.
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Michigan Broker License #6502432717 | 734.603.2770
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