When choosing a Seattle property management service provider, evaluating the costs vs. provided services is a critical aspect of finding the best solution for your needs.
Most property managers charge a percentage of the monthly rent amount for each property they manage. Others charge a flat rate for full-service management. Before partnering with a property management company to handle the tasks you need, you first need to discover what lies beneath the service fees.
Don’t spend more money than you have to. Here are a few insights into what many full-service management fees include—and the alternative to paying for more services than you need!
1. Understand All-Inclusive Price
An all-inclusive pricing strategy tends to cover all the charges or fees to deliver a package of services. For property management, these services can include tenant and pet screening, rent collection, tenant eviction, maintenance and repairs, and marketing of your vacant rental property.
At first glance, it may seem that you are getting a lot of property management services for one convenient monthly fee. However, that only benefits you if you need every service included in a full-service plan. Paying full-service prices when you don't need full service wastes your budget dollars. If you intend to perform some property management tasks yourself or outsource them individually, paying for an all-inclusive property management solution can be quite costly.
Before signing a full-service contract, be aware that you might be overpaying for Seattle property management services you don't need. Not all expert helps comes at a high price, and not every investor needs "full" service to boost their bottom line.
2. Scrutinize Each Service and Prioritize
Most property managers offer transparency for their full-service pricing, but without reviewing the details, it's difficult to know what you're really paying for. Is everything included in full-service pricing something that you need to grow your real estate investment business in Seattle? Can you do without some of those services and benefit from a solution that fits your budget and delivers exactly what you need?
When considering each Seattle property management service provider on your shortlist of immediate needs, don’t be afraid to ask relevant questions. "Full-service property management" sounds great until you realize you don't really need "full" service to meet your financial goals.
Be on the lookout for these terms and ask a potential property manager to clarify what they do to justify these fees:
- Service fees: Property management services providers have varying definitions of what constitutes a service fee. What "services" fall under the service fee? Ask for details to analyze this expense vs. the tasks you need a property manager to handle for you.
- Leasing fees: These fees are usually associated with leasing your Seattle rental property to a new tenant. It may cover the cost of marketing your rental property and showing it around, reviewing and screening tenant applications, processing leasing paperwork even in case of a renewal, and more. If you don't need a property manager to handle leasing, you don't need to pay a "leasing fee."
- Maintenance fees: Someone has to handle maintenance and repairs for your rental property. If it’s not you or someone you outsource the task to, your property management service provider must take charge of the work. However, if you're paying an extra fee to your property manager for maintenance services (or you're handling it yourself), you're overpaying for the care of your properties.
These fees add up! Too many fees or line items can make an all-inclusive monthly property management fee less inclusive. If you are not careful, you will pay for services you don’t need. You may also end up paying double for the services you outsource to another provider.
3. Opt For a Solution That Provides Flexibility
If you don't need it all, you shouldn't pay for it all! Without a full-service plan that doesn't allow you to remove services you don't want, you're stuck with package pricing and no way to reduce costs and maximize ROIs.
Consider a Seattle property management service provider that offers you the freedom to mix-and-match specific services. Real estate investors should have the flexibility to add or remove property management services as their needs change or portfolios grow. As an investor, you should know what you are paying for and how each service boosts your bottom line. If a property management solution cannot provide you with that kind of freedom, keep looking!
Know What You're Paying For With a Flexible Seattle Property Management Solution
Uncovering what lies beneath most standard full-service property management fees can be eye-opening! If we've revealed some mysteries for you here, we hope you understand that you have options for your Seattle property management solution.
Full-service can be the right solution for investors who want a completely hands-off experience when choosing income from rental properties. However, if you need expert services for only a few tasks, let RentWatch deliver the specific solutions you need for success! Connect with us to learn more about how we work and how you can save money when paying only for the specific services you need.
How much can flexible property management services save you compared to full-service solutions? Check out our Savings Calculator to learn more.
