In the property management industry, it can be difficult to get owners to understand what Grand Rapids property management companies do. It can also be hard to accept what they do and how they work. Before you begin buying and renting out investment properties with the help of a property manager, you need to understand the rate of return you’re going to get.
Property owners can better manage their own expectations if they sit down with a property manager and discuss the expenses that will be involved. If you lived in the house before you decided to begin renting it out, you probably fixed the leaky faucets or made other repairs on your own and in your own timeframe. With a property management company, you will need to start paying for those things. A lot of owners don’t realize that, and it can be difficult to come to terms with that new reality. So when you’re calculating what you’re going to receive in rental income, take those expenses into consideration. People will live in a house for 10 years and never paint a bedroom. But when tenants start moving in and out, it’s possible you’ll have to have the walls painted every few years.
Understanding the costs of professional property management can also be challenging, however, most people will tell you that these management services actually save you money. In the beginning, your expenses will be higher. However, your income will also be higher because a property manager is able to get your money very quickly and you won’t have vacancies sitting on the market. The short vacancy time pays for the fees involved on their own.
If you have any questions about what to expect from professional property management, please contact us at United Properties of West Michigan for more information.