Most property management firms charge a percentage of total rent. That means months can go by and all they have done is collected the rent and deposited in your account. You are basically paying hundreds of dollars just for an electronic funds transfer.
Inception Property Management Toronto(IPMT)
What does that mean?
It means we only get paid when work needs to be done.
We can provide full service or we can provide minimal service. It’s all up to you. It’s all about choice.
Do I need a Property Management company?
You don’t need a property management company to take care of your rental property. The reason is simple, you can do it on your own.
It’s not rocket science to manage a property, but do you have the desire and resources to do this on your own. For most investors it usually comes down to time and/or money and with Property Management companies charging such high percentages in most cases just to collect rent what’s the point? What is your time worth? Is it worth more per hour than what you would pay a property manager?
After managing my own properties for many years I learned that my time is better spent finding the next investment. There is no right or wrong, only what’s right for you!
IPMT is a la carte Property Management.
IPMT was created for those investors who want to choose how hands on they want to be.
9 important questions to ask before hiring Property Management
- Can you please tell me about your experience as a Property Manager?
- What percentage of rent do you charge? Do you charge any additional fees?
- How many properties/doors do you manage?
- What’s the protocol for marketing vacancies?
- What’s the protocol for screening tenants?
- What’s the protocol for handling maintenance and getting quotes?
- What’s the protocol for regular inspections? What’s included in the inspections?
- What can you tell me about the reporting system you use to keep owners informed?
- Do you own investment properties?
Some good reasons to hire a Property Management Company
- They’re professionals, which means they should have the systems and experience required to handle all the potential scenarios that may come up.
- They know how to market your property, place ads, and screen tenants, including reference checks, employment verification and credit scores.
- They know which forms to give tenants for rent increases, non-payment of rent, or evictions.
- They typically have a list of trades or qualified employees to handle all your maintenance issues, which could save you a lot of money.
- It’s less work for you!
Some Not so good reasons to hire a property management company
- As an owner, having a positive relationship with your tenants is extremely important. Depending on who you hire, there’s always the risk your Property Management company will become transactional instead of relational with your tenants.
- Having a Property management company affects your profit margin and can eat away all your cash flow, especially if hiring a PM wasn’t factored in when you bought the property. Aside from a monthly percentage of rents, there are also other fees. Filling a vacant unit typically costs anywhere from 50% to 100% of a month’s rent. These costs add up, especially if you have high turnover.
- Yes, hiring a Property management company will save you time, but you still have to manage the manager and keep the lines of communication open so you’ll know what’s going on with your properties. Depending on the quality of your units, there still may be a need for regular discussions and decisions that need to be made by you! However, it’s important that you don’t make assumptions that everything is going great. Be careful not to become overly trusting or complacent. That’s when expenses could get out of control.