Choosing a property management company is an important decision for property owners. While considering a variety of options, one crucial factor to evaluate is the pricing structure and the value you will receive in return.
We believe that our commitment to pricing transparency and to creating incredible experiences for property owners is apparent. Below, we will delve into the key aspects of our pricing, highlighting the scope of services, experience and expertise, customer service, guarantees, legal updates/knowledge, and the high-quality marketing content we produce for our clients.
Scope of Services
When comparing pricing plans, it is essential to understand the scope of services offered by different property management companies. Companies with a higher pricing tier often include a comprehensive range of services in their plans compared to those charging a low monthly management fee like 5%.
According to a survey conducted by the National Association of Residential Property Managers (NARPM), property management companies offering comprehensive services experience lower vacancy rates compared to those offering limited services.
These additional services can encompass various aspects, such as property maintenance, marketing, tenant screening, lease agreements, rent collection, and property inspections. By opting for a higher priced company, you can benefit from a more hands-on approach, saving you time and effort in managing your property.
Experience & Expertise
Experience and expertise play a significant role in property management. Higher priced companies generally boast a wealth of experience, which translates into lower vacancy costs, efficient monitoring of preventive maintenance, and effective resolution of tenant disputes, including those related to homeowner associations (HOAs). Their knowledge and track record allow them to navigate complex situations with ease, safeguarding your property's value and minimizing potential risks.
Customer Service
Superior customer service is an integral part of our pricing model. When you choose a higher priced property management company, you should expect quick response times and attentive support. This ensures that both property owners and tenants feel heard and valued, reducing frustrations and enhancing overall satisfaction. Whether tenants need maintenance assistance or have concerns, our dedicated team will be there to provide prompt solutions, maintaining a harmonious landlord-tenant relationship.
Guarantees
Higher priced property management companies often offer guarantees to instill confidence in their services. These guarantees may cover various aspects, such as finding a suitable tenant within a specified timeframe or ensuring the satisfaction of new tenants. By choosing a company with such guarantees, you can have peace of mind, knowing that your investment is protected, and your property will be managed with utmost professionalism and diligence.
At Rincon Property Management, we provide guarantees so our clients know they are protected. Our guarantees include:
- Renting your property out in two weeks: We provide each of our clients with the guarantee that their property will be rented out in two weeks or less! If we don’t have a tenant selected in that time-frame, you’ll receive a month of free management fees!
- 90-day money-back guarantee: If you change your mind about utilizing our property management services, you can receive a full refund of all management fees within the first 90 days.
- No upfront payment: Until a tenant is in place, we won’t charge you… Guaranteed!
- No hassle cancellation guarantee: You aren’t stuck in a lengthy contract with us. If you aren’t satisfied with our services, you have the ability to cancel with a 60-day notice at any time.
- Six month tenant guarantee: In the rare case that a tenant needs to be removed from the property, we will replace them for free for up to six months.
These guarantees are essential in letting our clients know we’re serious about providing them with impeccable service.
Legal Updates/Knowledge
Staying up-to-date with the ever-changing landscape of property laws and regulations is crucial in the property management industry.A survey conducted by the National Association of Realtors (NAR) indicated that property owners who work with property management companies that stay informed about legal updates and comply with relevant laws face fewer legal issues and potential liability. A study by RentPrep, a tenant screening service provider, showed that property management companies that implement rigorous tenant screening processes and offer guarantees have lower eviction rates.
Higher priced companies understand this and invest in continuous legal updates and knowledge enhancement. This ensures compliance with relevant laws, mitigates legal risks, and keeps you informed about any changes that may impact your property or tenancy agreements.
Our Content We Produce
As part of our pricing plans, we go beyond basic property management tasks. We understand the importance of marketing and maintaining a strong online presence. Higher priced companies often offer additional services such as creating marketing videos and providing regular updates to promote your property effectively.
According to a study by HubSpot, incorporating video content in marketing strategies can increase conversion rates by up to 80%. Property management companies that produce marketing videos as part of their services can help attract potential tenants and generate higher interest in rental properties. By leveraging innovative marketing strategies and producing engaging content, we help attract high-quality tenants, thereby maximizing your rental income potential.
Let’s look at some examples!
To best explain the impacts of selecting companies based solely on pricing, we have developed three fictional scenarios. While the circumstances and individuals in these stories may not be real, the consequences that they faced are.
Meet Sarah
Below read a short, fictional story about a rental property owner named Sarah whose management company neglected to conduct regular inspections:
Meet Sarah, a local rental property owner who selected a property management company last year. While Sarah briefly looked into reviews, after getting pricing from each company, she decided she wanted to save money and select the cheapest company. After all, the service offerings looked similar at each. Unfortunately, the cheaper company Sarah selected wasn’t as buttoned-up as she had initially hoped. Although Sarah didn’t know it, the company had neglected to conduct a thorough annual inspection of her property.
Without regular inspections, issues that could have been detected early on were allowed to fester and worsen, resulting in severe property damage and exorbitant repair costs. In fact, studies have shown that the average cost of deferred maintenance can be as high as 4% to 5% of a property's value annually. For Sarah, who owned a property valued at $500,000, this meant potential damages costing her a staggering $20,000 to $25,000 each year. The lack of thorough inspections by her previous management company not only resulted in significant financial losses but also put Sarah's investment at risk, jeopardizing her long-term success as a landlord.
Meet Lisa
Meet Lisa, a local landlord working with a property management company in her area. Lisa had unknowingly entrusted her rental home to a property management company that wasn’t proactive in updating the rental pricing. Although the company was supposed to handle these details for Lisa, she later found out that the management company she utilized failed to adjust the rent for several years, despite similar rentals in the area renting out at much higher price points. This oversight cost Lisa dearly, as she missed out on substantial amounts of rental income that could have been rightfully earned.
On average, rent increases that are not implemented can lead to a loss of 10% to 30% of potential rental income over a five-year period. In Lisa's case, considering her property's annual rental income of $30,000, this amounted to a staggering $15,000 to $45,000 in unrealized earnings. Such significant financial losses not only hindered Lisa's ability to maximize the returns on her investment but also created a substantial setback that took time and effort to recover from.
Meet Kevin
Meet Kevin, a local rental property owner who trusted his property to a seemingly reputable management company, at a great price. Kevin was happy to have found the company, and after looking at their services, it was clear they would be able to handle everything.
Little did he know that the company would neglect disclosing crucial information about tenant rights under AB1482, a statewide rent control law. As a result, Kevin found himself in a deeply troubling situation that spiraled into a financial nightmare.
Not only did Kevin face legal consequences for unknowingly violating the law, but he was also hit with staggering fines. On average, landlords can face penalties of up to $10,000 per violation of AB1482. In Kevin's case, with multiple violations, the financial damages quickly escalated to an exorbitant amount, leaving him in a state of panic and distress. The hidden costs of inadequate property management can be truly devastating, as Kevin painfully discovered.
These cautionary tales highlight the importance of partnering with a reliable property management service that understands the nuances of the law, conducts thorough inspections, and ensures that your property is properly priced. By doing so, you can protect yourself from the harrowing financial and emotional turmoil that can result from inadequate management practices.
Choosing a property management company should not solely revolve around pricing. It is crucial to consider the value and benefits you will receive in return for your investment. Higher priced companies generally provide an extensive scope of services, leverage their experience and expertise, prioritize customer service, offer guarantees, stay updated with legal requirements, and produce engaging content to enhance your property's visibility. By selecting a property management company that offers a comprehensive package, you can have peace of mind and enjoy a hassle-free property ownership experience.
To learn more about our pricing at Rincon Property Management, you can visit our pricing page, here.
