How much do property managers charge?

Most Boise property management companies typically charge between 8% to 12% of monthly income. It has become common practice for Boise property managers to also charge additional fees, such as leasing or renewal fees, setup fees, inspection fees, eviction notice fees, etc. These can add up quick and it is important to fully understand what fees your property manager will charge so that you aren't caught by surprise.

While property management services incur fees, the associated costs are often outweighed by the services provided. These fees save landlords time, effort, and resources in managing their properties. Just like a great tax advisor, a fair priced and professional property manager can save you money through lower vacancies, professional marketing, optimal rents, tenant screening and retention, routine maintenance and giving you more time to pursue alternate ventures.

How to choose the right Boise property manager?

Not all property managers are a good fit for all landlords, just as not all landlords are a good fit for all property managers. Fortunately there are numerous property management companies in Boise to choose from. If you hear a property manager saying "we are the BEST for everyone", be very careful! Rather than trying to find who is the cheapest or who is the "best", you need to determine who is the best fit!

The fist step in this process is determining your needs:

• Is cost a big factor?
• How involved do you want to be with your property?
• What are your investing goals?
• Do you want to conduct your own repairs?
• Do you want a local or nationwide management company?
• What are your communication and property report expectations?
• Are you tech savvy?
• The list goes on...

By conducting thorough research on this, you will be better prepared when seeking recommendations and interviewing potential candidates. It is vital that when selecting a property manager you focus on compatibility to meet your specific needs and investment goals. Without proper due diligence, landlords risk partnering with unsuitable property managers who may deliver subpar services, compromise property performance, or damage landlord-tenant relationships.

Time

Time is the most important factor to consider when deciding to bring on a property manager. It is the only resource in this world that we can't get more of.

So what does more time mean to you? Does it allow you to take on another job or venture that offsets the cost of a property manager? Is it spending more time with your family or having a great night sleep not worrying about a phone call for a leaking toilet? Or is it maybe even a round of golf, camping weekend or finally going to that basketball game?

Whatever it means to you, hiring a good property manager will give you more time and less stress.

It is difficult to literally compare this trade-off, as we can not quantify less stress or time with friends as a number on a spreadsheet. However, it does give you a much better understanding of what these other activities are worth to you and the value of hiring a property manager.

Legal Compliance

Professional property managers possess in-depth knowledge of ever-evolving landlord-tenant laws, ensuring landlords and properties remain compliant with legal regulations governing rental properties. This expertise minimizes the risk of legal disputes, eviction challenges, and potential financial penalties, providing owners with peace of mind and legal protection. If you haven't already, read our blog on the top landlord-tenant law questions!

Tenant Screening

Unprofessional tenant screening and placement is the gateway to an infinite amount of problems and costs associated with your property. This is one of the factors where hiring a property manager can save you money in the long run. It is vital to conduct comprehensive background checks, credit assessments, income verifications, reference checks, pet screening and rental history reports. This meticulous screening process minimizes the risk of leasing to problematic tenants, reducing the likelihood of late payments, property damage, and eviction proceedings. It is also important to be fully aware of and follow the Fair Housing Act during this process to avoid costly disputes related to discrimination.

Rent Collection

Rent collection is one of the most dreaded tasks for landlords. It can be difficult for some to maintain a healthy tenant-landlord relationship while enforcing the rules and lease terms. Too often owners find themselves in a sticky situation after agreeing to a special request or favor to a tenant.

Hiring a property manager can alleviate this burden and maintain a professional and respectful relationship. Property managers streamline the rent collection process, ensuring timely and consistent payments from all tenants. This will safeguard the landlords' cash flow and mitigate financial risks associated with delinquent tenants.

Vacancies and Tenant Retention

A reduction in vacancies is one of the biggest cost saving benefits a property manager can provide. They use proactive vacancy management strategies, including effective marketing, property showings, and tenant retention initiatives such as proactive communication, responsive maintenance 24/7 and fair, respectful treatment. Simply listing a property on Zillow rental manager and craigslist is not an effective solution in such a competitive rental market. Turnovers can be costly and by minimizing vacancy periods and swiftly filling vacant units with qualified tenants, property managers optimize landlords' rental income and mitigate revenue losses associated with prolonged vacancies.

24/7 Maintenance Response

The dreaded 2:00am leaking toilet call is a fear of most DIY landlords. Exploring the outdoors with no cell coverage, turning your phone off in a meeting or church, leaving the country on vacation - all of these activities are never the same when managing your own rental property. Being a good landlord means you need to be reachable at all times and outsourcing this can be a huge weight off your chest. Not just that, it also leads to greater tenant satisfaction, ensures safety and protects your investment from avoidable damage. Property managers offer 24/7 emergency maintenance services, ensuring prompt resolution of tenant issues and property emergencies.

Property Management Software

Some Boise property management companies utilize advanced software platforms to streamline operations, track financial transactions, and provide landlords with real-time access to property reports. Property management software enhances transparency, efficiency, and communication between landlords and property managers, facilitating informed decision-making and performance monitoring. Landlords who self-manage may rely on manual record-keeping and communication methods. Even if they do employ solutions like quickbooks for the property management finances and Zillow rental manager, there is still a lot of processes which are not automated. Without digital tools to streamline processes and track property performance metrics, landlords may experience inefficiencies, errors, and limited insights into their property's financial health. Some of the leading platforms include Appfolio, Buildium, Rentec, Avail, RentRedi, Yardi, Entrata, RealPage, Propertyware, ResMan and Doorloop. These should all offer an extensive property management software app for when you're on the move doing property inspections or showings. At Bluebird, we use Appfolio property management software and find it to be an excellent solution for rental property management. Make sure to check out our blog on how technology has revolutionized the industry!

Should you Hire a Property Manager in Boise?

As with most things in life, it depends. It is important to remember that property management is a profession, and it should be treated as such. There are great DIY landlords and there are terrible ones. If you possess the skill, knowledge, time, resources and systems to manage your own property, then go for it! If you are looking for more time, hate dealing with tenants, unsure of landlord-tenant laws, incurring unnecessary costs, high vacancy rates, etc., then outsourcing the management may be a good idea and will most likely end up saving you money.

You will need to carefully evaluate your individual circumstances, investment goals, and management preferences to determine whether outsourcing property management is the right choice for you. By considering each aspect of property management discussed above, you can make an informed decision that optimizes the success and profitability of your rental investments.

If any of the following videos speak to you, it may be time to give us a CALL!