Are you thinking about leasing out your home? Not sure you want to be a landlord and deal with all the headaches that come with it? Should you hire a property management company? Do you go with a franchise property management company or a Ma and Pa company? So many questions that need to be answered, but where to start?
Property Management Franchises
Are franchised companies better than the local operator? Depends on who you ask. Just think about yourself for a minute, do you prefer the local hole in the wall taco place or the well-known chain restaurant? Now ask your spouse or friend the same question. Most likely you will get different answers from those that you ask. And, more than likely their reasons will be different as to why they will that way.
Some might say, a positive trait to a well-known chain is consistency. If you eat tacos in Alaska and eat at the same chain restaurant in Iowa, the tacos should be the same. With the local Ma and Pa taco stand you might know what to expect. Some might say, supporting your local business owners is the way to go, they will take care of you better because they are vested in the community. Same holds true with property management companies. If you have a property in Southern California and purchase another property in Washington, more than likely you want to stick with the same management company if possible. At least you know how they operate, what their customer service is like, and overall what to expect.
Key Players in the Property Management Franchise World
Most management companies are going to be local to the area. Some might be Real Estate agents that have stumbled into property management others might be Joe Smith that decided to cash in on the booming rental market by opening a management company.
However, there are some big property management franchises in the arena. They include but are not limited to:
- Renters Warehouse
- Real Property Management
- Key Renter Property Management
- All County Property Management
- Manager 4 Less
Comparing the top two property management franchises
Renters Warehouse is one of the top management companies in Southern California. They provide a variety of services for investors, tenants, and single-family owners. You can choose from tenant placement only services or full-service property management. They even offer a few a-la-carte options which you can add to your property management services package. One such option is an Eviction Protection plan. For a minimal monthly fee, you can pay for Eviction protection, like an insurance policy. Under this plan they would pay for an eviction up to $800 in the event that one is needed for your property.
Renters Warehouse offers a tenant placement only plan. For a fee they will find a potential tenant to rent your home. They do offer a 6-month warranty that can be extended up to 18-months in certain markets. This warranty states that if the tenant doesn’t work out then they will find you a new tenant for FREE.
Full Service Property Management
Renters Warehouse has full service management services for a base price of $99 per month. They do offer a discount for additional units (certain markets). For this fee they will place a resident in your home, manage your maintenance repairs, and more. There is a placement fee which is charged for finding a tenant for your home. The fee varies depending on location of your property. You will want to contact the local office for exact fees.
If you are committed to a long-term plan of renting your property, Renters Warehouse offers a unique pre-payment plan. If you want to pay your management fees upfront in a lump sum they will offer you a discount. You can save up to 25% of your yearly management fees. Below is the breakdown of your savings.
15% savings for 12-17-month contracts 20% savings for 18-23-month contracts 25% savings for 24+ month contracts.
That is a huge savings in your pocket. That extra money can be used for the repairs that may come up through the contract. Maybe even put that towards a vacation that you have been wanting to do. Also knowing you have a management company working for you while you’re are that extended vacation.
Renters Warehouse is a very large management firm. They have managed more than $3 billion in real estate including over 19,000+ homes over 42 markets and 25 states. If you own multiple rental properties, Renters Warehouse is an option for having all your properties under one management company.
Real Property Management has been in business for over 30 years. They have succeeded by the services and management style for home owners. Providing 24-hour service nationwide puts them as a top management in the country. Their leadership team has experience for all areas of the company. Real property management has been featured in the Wall Street Journal, US News, and many others.
If you are looking for a company to screen and place a resident for you, then Real Property Management might not be a good fit for your needs. You will want to check with your local office to see if tenant placement is an option that they offer.
Full-Service Property Management
Real Property Management has full service management services for a percentage of 6.9% per month. Their fee includes pre-screening of the tenant, collecting of the rent, and paying the landlord. They conduct monthly inspections for the property, and file for any evictions. There is a resident placement fee that is charged, ranging from $395-$595. Bi-annual inspections are also conducted for a fee of $75. This inspection includes any minor maintenance such as changing the smoke detector batteries, AC filters, or any minor leaks.
Real Property Management services owners across the nation. They have over 300 locations in the United States and Canada, giving landlords an option to have their properties under one management company.
Wrapping it up
It’s important to note that all locations are independently owned and operated, for both Renters Warehouse and Real Property Management. It is recommended that you conduct your due diligence in considering a property management company. Look at all companies, both local companies and franchised companies. You might be surprised on what you find. If you are in the Riverside County area and are looking for a property management company that is not a franchise but offers great systems and processes, check out Management One. We would love to speak with you about your property management needs.