Many property owners think to themselves “How Hard Can It Be?” to manage their own properties.

On the surface it seems easy!  All of us are capable of calling a plumber, landscaper or an air conditioning contractor to fix various things that are in need of repair.  However, a Professional Property Manager knows what the cost should be for the repairs and when to advise their client to replace said broken item versus wasting money on a short term repair.  A Professional Property Manager brings to the table a vast knowledge and background in having dealt with these types of issues over their entire career and will have the contacts to get repairs done both on a more timely basis and most likely at a lower cost.

Property owners typically are not familiar with tenant rights and tenant law.  This can often get them in trouble, especially as judges tend to rule in favor of the tenant.  You must be very familiar with 3 Day Notice practices, Unlawful Detainers, Evictions, etc.

The property management fee is an expense for a property owner with NNN leases and therefore passed on to the tenants.  It can be classified as an Administrative Fee (which is typically 15% of the annual operating expenses excluding property taxes) or as a Property Management Fee which can be up to 5% of the total gross rental income.

Lastly, one of the main reasons to have a Professional Property Manager manage your property and tenants is that they serve as a buffer between the owner(s) and the tenants.  This creates less conflict between the two parties.

Tenants are typically more compliant with adhering to the rules of regulations of their lease, less likely to fall behind on their rent payments as they know the property manager has a duty to their client to collect their rent and know to expect a 3 Day Notice if they have not paid. Being the buffer between landlord and tenant allows the property manager to negotiate on a different level with the tenant on issues that arise during their lease term and upon their lease renewal.  Property owners give up less when the tenant deals with the property manager versus the owner directly.