Self Management VS. Professional Management
ADVANTAGES OF SELF MANAGEMENT • $$$ The main reason to manage your own home is cost savings. This may be a valid enough reason to undertake self management. However, there are some items to consider
PITFALLS OF SELF MANAGEMENT • $$$ • Liability • $$$ • Time • $$$
SELF MANAGEMENT CAN COST MORE THAN YOU SAVE IF YOU CANNOT ANSWER THE FOLLOWING IN A POSITIVE FASHION • Do I have the time to manage? • Am I familiar with the legal side? State statute, county and city regulations, fair housing laws etc. • Do I understand the ongoing tasks associated with management? • Can I afford the extra time, learning curve and possible mistakes? • Am I comfortable being on call 24/7/365?
• Do I have service personnel who can address general maintenance, HVAC, plumbing, electrical, etc.? Are they appropriately licensed? Do they have the necessary insurance? • Do I understand property management accounting • How will I handle: • Showings • Rent collection • Maintenance • Inspections • Lease enforcement
You would hire a professional manager.... For the same reason you would hire a CPA, Realtor or Investment Broker. Professionals in their respective fields are experts in their disciplines. Experience WILL save you time and money.
PROFESSIONAL MANAGEMENT IS LIKELY MORE AFFORDABLE THAN YOU THINK
A large percentage of Aspen Management’s current properties were either owner managed or managed by another firm
A majority of those properties experienced a rent increase under our management, with the average rent increase being 15.28%!
How would that look in practice?
Owner rented at $2,100.00/month. Professionally rented with an average 15.28% increase - $2,420/month. AFTER management fees, the owner is pocketing $2,075.00/month making the net expense of professional management $25.00/month!!
OWNER EXECUTED LEASE VS. PROFESSIONALLY EXECUTED LEASE
OWNER EXECUTED LEASE We frequently see significant deficiencies in the following areas when owners execute their own leases • Tenant Qualification - most self managed owners either do no background check or a limited background check. We check credit, criminal, employment and residency history which results in a better qualified tenant. • Leases - most self managed owners have inadequate leases. Our lease is reviewed by an attorney and amended as laws and regulations change and evolve.
• Lease enforcement - lease enforcement goes beyond rent payments, most owners do not know how to enforce the terms of a lease. Aspen staff members have over 100 years of combined management experience across tens of thousands of leases. Experience matters , we have the knowledge to achieve the best outcome for our owners. • Move-out procedures - many self managed owners do not know best practices for processing a tenant move out. Aspen knows the legal requirements and has tried and true move out protocols to best protect our owners.
THE TAKE AWAY • Professional management is more affordable than you think • Professional management nets you a more qualified, better tenant • Professional management protects your investment
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