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What's the house worth? What would that money earn doing something else? (Stocks, bonds, etc). Property management companies charge 10% of the rent. That's the fee you pay for them to answer the phone when the tenant calls. They then call you and ask what to do. It's a very expensive messenger service. If the tenant calls and says a faucet is dripping, the management company calls a plumber, who rolls out at $125/hr, then puts $50 worth of parts in the faucet, you're in for a couple hundred bucks. Please disregard that this is for a $25 faucet that you could throw away entirely and replace in 5 minutes - you weren't there to make that decision. So $300 it is. For an additional full month's rent (not counting the 10% they already get) they will find you a new tenant. It costs $25 to run a background check - this is not included in either the 10% or the full month's rent you're paying - that's an expense and you get to pay that too - they will find and (eventually) install a new tenant. If that tenant skips rent the 2nd month and then bashes holes in the walls and holds over for three months until you finally get them into eviction court (all the while, you pay your 10%), I'm not a big fan of property management companies. If you live local, you can (after some study) become a small-time landlord. If you live far away, sell.
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May 25, 2017 05:30
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| # ¿ Apr 29, 2024 04:33 |
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