The Real Cost of Do-It-Yourself Property Management

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The Real Cost of Do-It-Yourself Property Management

You are a business-savvy entrepreneur. How do we know? You own rental property, and you work hard to maintain, promote, and rent it so you can someday make a profit. You constantly look for ways to minimize costs. You’ve worked hard to get to this point. Are you ready to take it to the next level of success?

Here’s Your Pink Slip

To truly succeed, we strongly suggest you give yourself the pink slip for property management. Sacramento, CA rental owners say this sounds counterproductive to the goal… at first. After closer examination, however, they realize it’s quite the opposite.
Look at the numbers. Here’s a sample of your real costs for do-it-yourself (DIY) property management. Sacramento, CA landlords who partner with Real Property Management Select save time and earn more in the long-run.

Sample Costs of Self-Management

(These calculations assume your time is worth $45/hour.)

Property Management Activity	Real Cost of Self-Management
2. Stay Current with the Law Ignorance of changing laws and regulations will not protect you. Stay up-to-date on all applicable federal, state, and local laws, regulations, and codes so you can comply with them. Many rental laws favor tenants and renters, so do your homework and proactively protect yourself.	$90 (2 hrs./month)
3. Comply with Trust Accounting Rules Trust accounts keep tenant deposits and rent payments separate from operating capital. It sounds simple, but it’s not. Obey the rules for trust-fund integrity, liability, accounting, reconciliation, and documentation.	$90 (2 hrs./month)
4. Market Strategically Walt Disney said that advertising is everything. Considering how well his resort is doing, he was probably right. Make sure you research the marketing efforts that are most effective in Sacramento, track key metrics, and continually manage ads and postings.	$90 (2 hrs./month)
5. Manage Tenants and Properties Find and screen reliable tenants. Write and sign leases. Manage cash flow. Perform property inspections and coordinate routine cost-effective maintenance. Compare rates on parts and labor. Take phone calls from tenants 24/7. Collect rent and enforce fines. Evict when necessary.	$720 (16 hrs./month)
TOTAL	$1,080 / MONTH

Would you rather pay $1,080 or $100 to manage your property?

Your real cost of self-management may be $1,080 per month or even more if you want to avoid risk and maintain marketability and future equity. Compare that to the cost of professional Sacramento property management companies. The average monthly fee is 8-12% of your monthly rent. So, if you rent for $1,000 per month, you may pay around $100 flat rate.
It comes down to whether you have the time, and if so, what your time is worth. It’s at least worth a phone call to Real Property Management Select team . Find out what we can do for you today!