My husband and I have a rental residential property. We have a realty company that manages the property. So we have to pay for property management fees. These fees may be a one time fee each time a renter is found. These costs stem from credit and background checks to establish that the renter can meet the financial obligations of renting. Or it may be a monthly fee of maintaining the rental agreement.
Here is how we save on these fees.
1. Carefully select your property management company. We found about six companies that could manage our property. Most were the big name realty companies like Remax.
a. We interviewed each company and discussed with them at length about their experience, how much rent we could charge, and the fees that they charged. Basically, we screened out the companies who were not positive about the location of our property. We screened out those who felt that we had to charge low rent.
b. We posted on the online church bulletin board about a need for a property manager. We were given the name of a family-owned realty business.
c. We prayed hard for the Lord to bring us to the right property manager.
d. Then we dropped the companies we knew were not right for us. We asked for a representative from the family ran realty company to come meet us at our rental property. We met this individual in person and hit it off great.
2. Get to know your realtor. We asked many questions of her and found that she was very knowledgeable in our area. She was a people person, but tough when she needed to be. We asked her things like what would you do if this situation arises and so forth. We felt that since many church members had confidence in this company, we could safely go with them.
3. Establish a repertoire with your realtor. We have had many contacts with our realtor. We have been kind and gracious to her each time we meet or talk over the phone. We listen to what she has to say because she knows her stuff. We are not demanding and hard to work with. That being said……..when the first rent check arrived, our realtor charged us twenty dollars less a month for managing the property. Her own words were you guys are so nice and pleasant to talk to. In fact, she continues to charge us twenty dollars less each month.
4. Be kind when the going gets rough. There may be a dry spell of renters who meet your realtors qualifications. Sometimes you wonder if they have forgotten that you need someone soon to rent out your home. In the midst of rough times when renters miss payments or a renter moves out and leaves you with a mess or when the realtor can’t seem to find that renter, stay graceful with your realtor. This last rent check we received, there was no property management fees whatsoever for finding a renter. Yes, there was the monthly one, but not the other one for placing the renter in the home.
Well because of these four tips we saved at least $20 a month or $240 a year. We also saved an additional $250 for finding a renter this go around.