There are a lot of people who are still unaware of the things that a property management service can do for them, and this is one of the main reasons why they tend to ignore the idea of hiring one. But if a person knows the things that he can expect from it, it will be easier for him to determine whether he really needs this kind of service or not. For now, let us discuss the basics of a fixed price property management service, including the pros and cons that you can expect from it.
Pros of a Fixed Price Property Management
The main advantage that you can get from a fixed price property management service is that you will be spending a fixed amount regardless of how much money your property could generate. It can either be an advantage or a disadvantage, depending on the performance o f IT Support Provider the property, but let us assume that it can generate $10,000 per month. If you are going get a commission-based property management, you will be spending 30%, in most cases, of the total revenue, which is $3,000 for this example. A fixed price property management service on the other hand will be charging a lesser, say $1,000 per month, which increase your total revenue every month.
Cons of a Fixed Price Property Management
A fixed price service is only disadvantageous for you if the property that you have doesn’t work well to generate more than what you are going to spend for the company. Everything looks good if your property could generate $10,000 per month, right. But what if you are only generating less than $1,000? That is exactly the problem of a fixed price service; you need to spend the same amount for years regardless of the income that you are generating from it. Aside from this, you cannot expect the company to do everything to increase the income that you are generating from your property, since the payment that you will be making on them won’t depend on the income that you generate from the property.
To make it easier for you to choose, a small property or something that is not performing well would be best with a commission-based service. Those are the huge or are performing far better than expected would be great with a fixed price service. Both option will work for you, depending on the performance of the property that you have, so it would be better if you are going to take it into consideration first.