Making more money as a property manager is possible with the right strategies. Increasing rent, getting a real estate agent license, and marketing effectively are all great ways to increase your income. Another fee that property management companies often use to make money is the lease renewal fee. This fee generally covers all the costs of renewing or modifying a lease agreement for a tenant.
It must be annual, which is when leases expire and must be renewed. However, some property managers choose not to charge it and include it in general management fees. If you own one property or several, you may be considering hiring a property management company out of necessity or convenience. While it may reduce your overall profits initially, a good property manager can also help increase your profits. One way to increase salary potential without investing in a bachelor's degree is to consider obtaining an official property manager designation. As a property manager, there are many things you can charge a fee for, and it's important to have this structure clearly established.
The most favorable option often used by many property management companies is the percentage-based rate. Although it sounds like a headache, this rate is the one that will usually generate the most revenue from managed properties. Once all of these factors are taken into account, property managers can set up a management commission that will generate business and profits. Of all the fees that exist in the management industry, property management fees are one of the most common. If you have a tight schedule, numerous investment properties, and the flexibility to absorb management fees, hiring a good property manager is probably the best option, as it will free up time for more important tasks and allow you to enjoy a more passive source of income.