In Florida, the average house costs around $407,000 according to World Population Review. As such, it's one of the most profitable states to own a rental property. Considering full-service property management can be a game-changer for property owners looking to simplify their rental processes.
However, there are certain pros and cons to be aware of when making this decision. Below, we'll explore some of the most notable to keep in mind. Let's take a closer look.
Pro: Expert Tenant Screening
Full-service property management services include a thorough tenant screening process. These experts ensure only qualified tenants move into the property, minimizing the risks of late payments or property damage. Professional managers check credit and rental history, allowing property owners to avoid potential issues from unqualified tenants.
Con: Higher Management Fees
Hiring a full-service property manager can be more costly than handling the property alone. Management fees are typically a percentage of the rental income, which can impact the overall profitability. Some owners may find these fees worth the investment due to the convenience and expertise they receive, while others might feel the costs reduce their earnings.
Pro: Regular Property Maintenance
Property management services ensure the property stays in good shape with regular inspections and prompt repairs. Owners benefit from comprehensive property care that keeps tenants satisfied and helps maintain property value. Managers coordinate with reliable vendors for maintenance, freeing owners from handling repairs themselves.
Con: Less Control Over Decisions
Property owners may feel they lose some control when outsourcing to full-service management. Managers often make day-to-day decisions regarding tenants and other property needs, which may not always align with the owner's preferences.
While property managers aim to act in the best interest of the property, the limited involvement can be challenging for owners who are used to hands-on management. Balancing the tenant management benefits with a reduced sense of control is an adjustment some owners need to consider.
Pro: Streamlined Rent Collection
Efficient rental processes simplify rent collection, ensuring consistent cash flow for the owner. Full-service property managers use automated systems for timely payments, minimizing delays and disputes.
Using this setup reduces the likelihood of missed payments and alleviates the owner's responsibility of collecting rent directly from tenants. With reliable rent collection processes, owners experience fewer financial disruptions and a steadier income.
Con: Potential for Communication Delays
Working with a third party can sometimes lead to slower communication, especially if the manager oversees multiple properties. Owners might not always receive immediate updates on issues or tenant concerns, which can be frustrating.
While most full-service managers prioritize transparency, delays can occasionally occur, leaving owners waiting for crucial information. Considering how communication is handled within the property management agreement can help minimize any potential frustrations.
Leverage Full-Service Property Management
While full-service property management requires an upfront investment, it pays for itself over time. Just be sure to find a reputable professional.
RightHouse Property Management provides a full suite of property management services in Orlando, Florida. With expert tenant screening, efficient rent collection, and strategic marketing, we ensure high occupancy rates and steady cash flow for property owners. You can get in touch with us today to learn more about how we can help.
