Let’s face it—property management fees aren’t cheap. While you may need to hire a property manager if you’re investing out of state or are unable to self-manage your property, these costs can quickly eat into your profits if you’re not careful. How can you ensure that you’re getting high-quality services for a fair price and keep your overhead under control?
Welcome back to another Rookie Reply! If you’re struggling to pull the trigger on hiring a property management company, we understand why you might be hesitant. Fortunately, Ashley and Tony are here to shed some light on the topic and share their own experiences with property management companies. They also talk about insuring properties during the rehab phase, as well as buying pre-foreclosed properties. Finally, they discuss balloon payments—what they are, how to use them to your advantage, and when it may be risky to get a loan that has them!
Ashley:
This is Real Estate Rookie, episode 296.
Tony:
The property management company owned their maintenance company. You don’t want to spend time trying to call four different plumbers to get a quote on how to replace a wax seal. But when we did search for other prices, the property manager’s rates were typically more expensive because you got to think too if they’re only charging you $100 per unit, that’s not a significant amount of money.
Ashley:
That’s because you’re so used to the short-term rental. [inaudible 00:00:28] the 30%.
Tony:
Yeah.
Ashley:
My name is Ashley Kehr, and I’m here with my co-host, Tony Robinson.
Tony:
And welcome to the Real Estate Rookie Podcast where every week, twice a week, we’ll bring you the inspiration, motivation, and stories you need to hear to kickstart your investing journey. And we are back today with another Rookie Reply episode where we’re going to be answering four questions from folks that are part of our Rookie audience. And look, guys, if you want to get one of your questions answered, head over…