The majority of Troy MI rental property investors and owners overlook the importance of their time. Research carried out by Real Property Management shows that the average household income for our clients is over $100,000 per year. Plenty of these people work in professional, technical, sales or service jobs. Having that income and estimating 2,000 hours of work year, our clients’ time is around $50 per hour.
But, a lot of Troy MI rental property investors willingly devote time to handling tenant concerns, becoming involved in solving emergency maintenance and repair problems, running after tenants to pay late rent, and handling other issues regarding property management. The value of their time spent considerably outweighs the expense of hiring a professional to manage a property.
As an example, a professional property manager’s fee for a $1,200 monthly rental would be about $120 per month. If a Troy MI rental property investor spends a mere 2.5 hours per month in managing the property, their personal time costs more than hiring a pro. (Not only that, a professional manager’s fees are tax deductible, so the gap is wider than in this example.)
At work, would this same investor perform tasks that can be accomplished by another person at a lower pay scale? No. They would request someone else do the work. Wise business people match the value of work to pay scales. So, this principle should also be the same for managing rental properties.
Are you working less than your pay grade? Contact us to gain more information about the ways we can help with your rental property management.