11 Property Management Myths and Facts

Investing in real estate is among the promising paths to growing your wealth, but before starting with the investment, it’s crucial to banish common misconceptions about property management.  

As homeowners, the thought of managing properties ourselves can be daunting, especially considering the time-consuming tasks like handling complaints and vacancies. Contrary to popular belief, hiring a professional property manager can alleviate these burdens. Let’s explore the truths behind property management myths to make well-informed decisions about your property. 

11 Common Property Management Myths and Facts 

Knowing the facts about real property management is crucial for making your real estate investment successful. Getting professional help with managing your property can be helpful for landlords. We offer top-notch property management with years of experience at Beach Front Property Management. Our team understands all about finding good tenants, collecting rent, taking care of your property, and following the law. Let us guide you through the ins and outs of managing property so you can make the most of your real estate properties. 

Myth 1: Property management is only for large property portfolios. 

Fact: Property management isn’t just for big property owners. Property management services can be very helpful, even if you only have one rental place or many. They can help find good tenants, collect rent, fix things, and ensure everything follows the rules. So, whether you have one or more properties, having a property manager can save you time and make things run smoothly. 

Myth 2: Property management is expensive.

Fact: Although you have to pay for property management services, they can help you save money over time. Professional property managers know how to set fair rental prices, keep your properties occupied, and handle repairs quickly and efficiently. You can earn more money from your rentals and avoid expensive errors. Also, you can deduct your property management fees from your taxes, which can lower your overall expenses. 

Myth 3: Property managers do not prioritize communication with landlords. 

Fact: Effective communication is important for managing properties well. Professional property managers know this and work hard to keep a good relationship between landlords and tenants. They make sure to regularly share updates about how the property is doing, its finances, and any maintenance problems. Good property managers always share an open and honest communication, so landlords know what’s going on with their property and can make decisions about it. 

Myth 4: Property managers only collect rent and handle emergencies. 

Fact: Property managers do more than just collect rent and deal with emergencies. They take care of many things like tenant screening, preparing rental agreements, checking the property regularly, arranging repairs, and dealing with evictions if needed. They understand the rules and laws in the area, which helps landlords avoid legal problems. 

Myth 5: Property managers always take complete control and override landlord decisions. 

Fact: Property managers team up with landlords to help them reach their goals. They give advice using their expertise, but the landlord makes the final decisions. Good property managers always listen to the landlord’s wants and work together to achieve the same goals. 

Myth 6: Property management is unnecessary when dealing with good tenants. 

Fact: Even if your tenants are good and trustworthy, managing your property is still necessary. Sometimes, even the best tenants might need help with things like needing repairs or facing emergencies. That’s where property managers come in. They deal with these issues professionally and quickly. Also, property managers know a lot about the rental market. They make sure your property stays in good shape and keep up with what other rentals are offering. So, even if your tenants are great, having a property manager is still helpful to keep things running smoothly. 

Myth 7: All property management companies are the same. 

Fact: Not every company that manages properties is the same. Beach Front Property Management is different because we offer personalized service, experience, and always keep you informed. We provide personalized services for your property and understand how to make it successful. With us, you can feel confident that your property will get the care it needs and be happy with the results. 

Myth 8: Incoming rent will cover all expenses. 

Fact: It’s important to plan for the possibility that rental income might not always cover your mortgage. Even with tenants, you’ll still have additional expenses like insurance, taxes, and maintenance. If you hire a property manager, their fee adds to these costs. To cover everything, you might need to set a higher rental rate than just your mortgage payment. While rental income can sometimes cover the mortgage, it’s not guaranteed, especially in the early years when most of your payment goes to interest. Many property owners consider refinancing for lower rates or monthly payments. 

Myth 9: Haunted houses are cheaper. 

Fact: Despite common belief, haunted houses do not necessarily come with lower price tags. While there may be challenges in selling such properties due to a smaller pool of interested buyers and longer listing times, consistent price reductions aren’t guaranteed. Tragedies in homes also don’t always lead to lower prices, and the effort to investigate such events may not be worthwhile. In some areas, haunted properties may have varying impacts on pricing, depending on local laws and buyer perceptions. 

Myth 10: Property management companies charge excessive fees. 

Fact: Yes, property management companies typically charge a fee, but it’s important to understand that these fees are usually reasonable and worthwhile. While some companies may have higher fees due to the quality of their services, it’s because they offer valuable expertise. Hiring a reputable property manager can boost your rental income by helping you set the optimal rental price based on the local market. This can potentially increase your earnings by hundreds of dollars compared to what you previously charged. 

Myth 11: An improving economy makes property management less profitable. 

Fact: Yes, property management companies typically charge a fee, but it’s important to understand that these fees are usually reasonable and worthwhile. While some companies may have higher fees due to the quality of their services, it’s because they offer valuable expertise. Hiring a reputable property manager can boost your rental income by helping you set the optimal rental price based on the local market. This can potentially increase your earnings by hundreds of dollars compared to what you previously charged. 

Conclusion 

Landlords and real estate investors need to know the truth about property management. Understanding property management facts can help you make smart choices and get the most out of professional property management services. Property managers take care of daily tasks and give you peace of mind, which is crucial for your rental properties to succeed and make money. Working with a good property management company like BFPM company can make your life easier, save you time and money, and lead to success in real estate.  

Reach out to BFPM for the best solutions for your property.