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Property Management Blog

Published on Wednesday, September 7, 2011

Affordable Property Management Solutions

Some of the things to keep in mind when you need affordable property management are given below-

1. Learn to differentiate between expense and investment- Money spent on interiors, light fittings and other extras can sometimes fetch unto 10-20 premium over prevailing prices. However, as not all expenses and accessorisations are noticed by prospective buyers, they can be a total write off from the return point of view. Try and evaluate the ROI return on investment before avoiding or making certain expenses.

2. Give the property manager a limit on the expenses he can make without your approval- While you cannot be bothered for small approvals, you must mutually agree on a budget before you start so that there are minimum chances of spending beyond the budget. In fact ensure that you let the manager know of only 80 percent of your budget and keep the 20 percent as a buffer for any last minute suggestions and rework. The more you discuss and decide in advance, the fewer will be the surprises later on, ensuring affordable property management .

3. Ensure involvement in the high expense or high risk decisions- Try and leave the small stuff to the vendor but be present when negotiating for high value items for the house. Do not delegate the rental or sale negotiation. Ensure that you are present at least to over see the exchange.

4. Negotiate- Assuming that you have done your research in the pricing – standard or commission based, always try and negotiate depending on the size and value of your property. Realty managers understand that ultimately they are offering affordable property management and beyond a certain price point, it will be a bad financial decision for the client.

5. Trust- Last but not the least once you have short listed a manager or a company put your complete trust into the relationship. Engage but not with the intent of catching them out but helping they understand your requirements and views. Clients that are forever breathing down the manager neck or trying to micromanage do not always get the best results. In fact, the manager may just stop taking the required ownership and important transactions can just fall through the cracks.

Every company management tries and offers affordable property management solutions but without client cooperation it is not possible. If the customer is not clear about what they want, or spring last minute requests, there will be delays and rework which can impact the total costing in a big way. It is important for everybody to have periodic meetings to discuss mutual issues and ideas and stick to some kind of project plan to minimize wasteful losses.

 


Onyx Management Group, Inc. is a full service property management company currently servicing residential and commercial properties throughout Greater Philadelphia, Bucks County and Montgomery County. With our highly detailed approach to overseeing properties of any size, we provide our clients with the benefit of ownership without the burden; dedication to our clients has been a major factor in our success. Whether you are looking to rent or lease in the Greater Philadelphia, Bucks County or Montgomery County areas, give Onyx Management Group a call. We've made the Greater Philadelphia, Bucks County or Montgomery County area home for ourselves and for the many satisfied tenants and business owners we've worked with over the years. Thanks for visiting this online residential and commercial real estate property management source.

 

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Landlord Knowledge Base

If you’ve ever considered investing in a few rental properties in Philadelphia or Bucks County, PA now might be a good time. Prices are still low in Philadelphia, but have been on the upswing. According to the National Association of Realtors, the median price of an existing home in a US metropolitan area grew 13.7% between July 2012 and July 2013, the latest in a 17-month streak of year-over-year price increases. 

New landlords can choose from properties that are likely to appreciate and a large pool of potential renters.Licensed realtor Pat Mueller cites a few reasons for this trend: “Many families have lost their homes to foreclosure and are entering the rentals market for the first time in years. Mortgages are also harder to get now, so fewer people are qualifying for a new one.”The more skills you bring to the table to get into Houses for Rent in Philadelphia Philadelphia or Bucks County, PA and the more time you have to devote to your properties, the faster you can make a return on your investment. 

But investing in rentals can also be disastrous (or too stressful to be worthwhile) without expertise. Here are three professionals you may consult about your new rental properties, and what you can do to mitigate how much they cost you:Handyman:  You may need to hire a specialist for some work on your rental. If you need new outlets or new pipes, for example, hire an electrician, plumber or licensed contractor. Handymen usually tackle smaller, more manageable tasks, like:

  • Painting and paint removal
  • Drywall repair
  • Minor appliance repairs (fixing a leaky toilet or faucet, among others)
  • Installing tiling or flooring, moldings, windows, doors
  • Refinishing decks, cabinets and other wood items

When You Could Skip It: You could do any (or all) of these projects yourself if you have the time and interest in learning. Of course, this only works if you live relatively close to your rentals and are flexible enough to service them on short notice. And if you’re willing to respond to the occasional 5 AM basement flooding.

Average Savings: Any base rates or costs-per-hour vary from location to location in Philadelphia or Bucks County, PA , but nationally, you can expect to spend an average of $60 to $85 per hour for repair costs. It general costs less to hire an individual handyman than a handyman employed by a company. Expect an additional charge if your job requires a trip to the store for materials.

Resident Property Manager As the owner of a handful of rental properties, you may be able to manage them yourself, but if you want help, a single resident manager would probably be more cost efficient than a property management company. Resident managers may:

  • Serve as a handyman
  • Advertise vacancies in your units
  • Show apartments to prospective tenants
  • Review rental applications
  • Collect rents

When You Could Skip It: Again, the closer you live to your properties and the more spare time you have, the less likely you are to need a manager. The obligations of being a boss will also cut into the time you save on maintenance.

Average Savings: The national median wage for residential managers is just over $25 per hour. Research the wages in your community and adjust according to how much responsibility your manager will take on. 

Real Estate Agent: Once you’ve gotten your financials in order and done your own research on the neighborhood(s) you’re considering, you might contact a realtor to show you potential properties. You can also arrange for a realtor in Philadelphia or Bucks County, PA to show rentals once they’re ready to rent.

When You Could Skip It: It depends. Even if you’re a local, or have thoroughly researched the neighborhood(s) you’re considering, a realtor is a great resource for a first-time rental buyer. Realtors have access to data and statistics not necessarily available to the general public and first-time buyers may not know all the right questions to ask. Using a realtor to fill your Houses for Rent vacancies is less of a no-brainer, depending on your other time commitments or whether you plan to hire a resident manager who could do the same thing.

Average Savings: As a buyer of rental properties, as when buying your own home, sellers typically pay most, if not all, of the buyer’s realtor fees. In this case, Mueller points out there’s little reason not to work with a realtor. For help in filling your units in Philadelphia or Bucks County, PA, the services of a realtor would set you back between 10-20% of the unit’s rent per month.  Mueller recommends interviewing with several brokers before making your final decision to invest into Houses for Rent .

The Bottom Line: As a new landlord, you can’t necessarily control the flexibility of your schedule or the amount (and cost) of unexpected repairs to your properties. Rentals are a long-term investment. However, to maximize profits from your Houses for Rent, new rentals, you can buy close to home and start small. It is best to begin with just one or two properties. This will allow you to maximize the time you spend on your properties’ needs, and minimize the amount you’ll have to pay anyone else.

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