Property can broadly be classified into three categories; vacant land, residential property and commercial property. Managing each of these properties may vary slightly as they each have distinct characteristics of their own. Nonetheless, managing property as a whole is an endeavor that will require meticulous planning and commitment. Carelessness and laxity when managing your own property may turn a good investment into a bad one.
Managing Your own Properties
Managing a rental property, for example, would entail repair and maintenance before renting, deciding on the rent price, selecting tenants, collecting rent, maintaining the house and keep track of your expenses to make sure you are not making a loss. This whole process is not as easy as it would appear as underneath all that work you will also have to check on your houses routinely, handle evicting tenants, charge late fees, deal with property charges and or even worse, face lawsuits. Is all this worth the hassle or is a property manager better suited to handling your own property?
Third Party Property Management
The answer to this question lies on whether you can handle all these tough situations while still keeping your peace of mind. As a property owner, you may lessen your burden by opting for third-party property management services, such as ICC Property Management. The difference a property manager makes is big. They cut into your profits but still save you a lot of time and headache. Additionally, property managers go above and beyond what you would normally do to make your property appeal to tenants at the same time covering you as a landlord. Some of the services they provide include professional assessment of property rental value, provide market analysis, do professional photography in high resolution, conduct showings, pre-screen all candidates, draft a lease binding the company with the tenant, do an in-depth inventory of property condition and many more.
How Much does Property Management Cost?
Property management companies in Toronto charge fees that range from 5-11% of one month’s rent. Some property management firms may charge a leasing fee that could be paid as a half or full month’s rent. A condo in Toronto will average maintenance fees of about 50 – 60 cents per square foot regardless of amenities. These costs have been on the rise in the last decade with a 3.4% bump in maintenance fees asked by property managers every year. This has not been very welcomed by the owners, boards, and residents of these buildings.
ICC Property Management has been at the forefront of reducing inefficiencies and adopting best practices to make sure that these fees remain at a minimum while still delivering exceptional services. In conclusion, managing your own property is not hard especially if it is a single property. The more the property, the more attention to detail you have to give into the management. A system to ensure everything is running smoothly will do just fine. If you value your time more or have a predisposition that can’t handle the rigidities of property management, then a real estate company will help you a lot better.