When considering using a Property Manager for your rental there are many factors to address beyond the dollar cost of a Property Manager handling your rental for you. One of the biggest is the peace of mind in knowing someone is handling your tenants 24/7.
You may not have considered all of the ways hiring a good Property Manager can actually save you money. Yes, you will have to pay the fees, but they can save you more than just cash.
“You have to account for the time and energy needed to find a high-quality tenant through applications, interviews, and credit reports. You also have to remain on top of your tenant’s deposits, rent checks, inquiries, and needs. Your tenant is paying you not only for a place to stay but also for service on the property. All of this takes time and know-how.” according to Money Crashers.
Knowing what your time is worth can help you see the true value of hiring a Property Manager. Time and costs will add up, especially if your rental is sitting empty.
The Motley Fool says the following, “First of all, owning a rental property can be done without a property manager,
but that doesn't mean it's a good idea.”
Yes, you can manage your own property, but it will take time, attention to detail. You really need to look at what your time is worth to you.
If you have multiple properties they can quickly become more than a full-time job keeping up with marketing, collecting rents and making repairs to your asset.
What It Will Cost Having Nest Finders Handle Your Rental
Tenant Placement - 1 Month’s Rent
- Rental Analysis
- Property photography, marketing, and showing
- Screening and approval of quality tenants
- Handling of leasing and the collection of deposits
- Move-in tenant and provide you with their info
- Advice and assistance to prepare a property for rent
Ex: Rent $1200, Mortgage $700
Total of 1 Tenant Placement is $1,200
1 year of Mortgage Payments $8,400
You have profited $7,200 and your rental vacancy was filled, your mortgage got paid, and you increased your equity in the property.
Property Management - 10% of monthly rent + 75% of Tenant Placement Fee
- Rental Analysis
- Property photography, marketing, and showing
- Screening and approval of quality tenants
- Handling of leasing and the collection of deposits
- Move-in tenant and provide you with their info
- Advice and assistance to prepare a property for rent
Ex: Rent $1200, Mortgage $700
Total of 1 Tenant Placement at 75% of $1,200 = ($900)
1 year of fees = $2,340
1 year of Mortgage Payments $8,400
$1200 x 12 = $14,400 - Fees $2,340 and 1 year of Mortgage Payments $8,400
You have profited $3,660 and your rental was hands-off, your mortgage got paid, and you increased your equity in the property.
Nest Rest Easy Premium - Flat Fee of $225 a month + 75% of Tenant Placement Fee
- Includes all Tenant Placement and Property Management services PLUS: Should a tenant stop paying rent for one of the eligible reasons below, we will cover the rent for up to 3 MONTHS or until the property is leased again:
- Tenant skips out on lease, leaving without providing the required notice/cancelations fees.
- Tenant is evicted.
- Sole Tenant passes away.
- Tenant leaves because of being called for military service or transfer.
- This package also covers the cost of rekeying locks in any of the events listed about, up to $200 in value.
Ex: Rent $1200, Mortgage $700
Total of 1 Tenant Placement at 75% of $1,200 = ($900)
1 year at flat monthly fee of $225 = $3,600
1 year of Mortgage Payments $8,400
$1200 x 12 = $14,400 - Fees $3,600 and 1 year of Mortgage Payments $8,400
You have profited $2,400 and your rental was hands-off, your mortgage got paid, you are protected from evictions and sudden loss of tenants and you increased your equity in the property.
If you spend just 10 hours a month working on managing your rental property calculated at $25 (you must decide what an hour of your time is worth to you) per hour you are losing the equivalent of $3,000 each year in time just maintaining your rental property.
We have not even touched on the cost of an eviction, marketing your rental when it is empty, and the possibility of months of vacancy trying to get the right tenants...
What You Won’t Pay With Nest Finders
- You will not be charged 20% or more on repairs they handle. In fact, they negotiate lower rates and pass the savings on to you. (On an $800 repair bill that could be as much as an additional $160 added to your cost)
- Extra for your accountant to dig through your rental records. Our accounting team creates a detailed statement for your home each month, documenting expenses and income, as well as other pertinent details. We also create a yearend financial statement for tax purposes. All of these statements can be accessed via the account portal.
- Contract Fees - no contract, no fee. You can cancel your contract with Nest Finders at any time.
