SALT LAKE CITY – December 4, 2015 – Real Property Management, the nation’s leading property management organization, found do-it-yourself (DIY) landlords are spending too much money managing their rental properties. The findings result from a new online resource the franchise launched that allows DIY landlords to calculate the time and cost of self-managing rental properties.
“The Landlord Calculator is meant to be a resource for current and prospective DIY landlords to understand the value of their time in respect to their income, and in comparison to the cost of a professional property manager,” said Lukas Krause, COO of Property Management Business Solutions, LLC. “The calculator offers a simple cost-benefit analysis to compare the many risks, rewards and responsibilities that come with being a landlord.”
The number of Americans choosing to rent continues to increase. More people are investing in the real estate market and becoming landlords, subsequently inheriting the many responsibilities of a property manager. Real Property Management’s Landlord Calculator incorporates the value of a property owner’s time to calculate the real cost of self-leasing and management.
The Real Property Management franchise conducted a national survey using the new tool, which revealed the following statistics:
- Respondents reported spending approximately 49 hours every year on various aspects of management. This includes:
- Filling vacancies
- Reviewing credit and background checks
- Move-in coordination
- Tax preparation
- And more
- One third of respondents deal with maintenance and repair requests that took an average of 17 hours to resolve each request.
- Fewer than one third of respondents described spending adequate time on every step of the leasing process. Many do not conduct criminal background checks, contact previous landlords for references all increasing the risk of renting to unqualified tenants. By not properly documenting the condition of the property before move-in, there is a greater chance of security deposit disputes when a tenant moves out.
The findings of the survey showed that many self-managing property owners work below their pay grade, and the value of their time exceeds the cost of hiring a professional property manager. For example, if a property owner’s annual income is $100,000, their time is worth $50 per hour, and so their opportunity cost of 49 hours is $2,450 each year – more than a professional would charge for leasing and managing a typical 3-bedroom single family residence.
The Real Property Management brand is the leading property management franchise in the nation with more than 260 offices in 44 states. Real Property Management Indianapolis Metro specializes in managing single-family homes, town homes, condos, multiplexes and small apartment buildings. Its services include finding and screening tenants, completing the lease agreements, collecting rent, arranging for any necessary repairs, and processing evictions when necessary. We also manage the legal compliance for local, state and federal real estate law.