The Real Property Management franchise conducted a national survey that showed that many self-managing property owners work below their pay grade, and the value of their time exceeds the cost of hiring a professional property manager.
For example, if a property owner’s annual income is $100,000, their time is worth $50 per hour, and so their opportunity cost of 49 hours (the average amount of time spent managing their property) is $2,450 each year – more than a professional would charge for leasing and managing a typical 3-bedroom single family residence.
This also does not consider what a person might value their own personal or free time which may be worth more than ones hourly rate.
The survey revealed the following statistics:
- Respondents reported spending approximately 49 hours every year on various aspects of management including filling vacancies, reviewing credit and background checks, move-in coordination, tax preparation and maintenance.
- One third of respondents deal with maintenance and repair requests that took an average of 17 hours to resolve each request.
- Fewer than one third of respondents described spending adequate time on every step of the leasing process. Many do not conduct criminal background checks, contact previous landlords for references all increasing the risk of renting to unqualified tenants. By not properly documenting the condition of the property before move-in, there is a greater chance of security deposit disputes when a tenant moves out.
How much time do you spend managing your property? It may be more than you imagined. Use our Landlord Calculator and see your results.
Read the full article published by Real Property Management here.
Looking for property management services? Call Real Property Management Reliable Solutions at (443) 990-0011 for a free quote and visit our website at www.rpmreliablesolutions.com.