Numerous Raleigh rental property investors and owners forget how valuable their time is. Real Property Management research shows that the average yearly household income for our clients is above $100,000. Most of these people’s jobs are professional, technical, sales or service based. Based on those earnings and assuming 2,000 hours of work year, our clients’ time would be worth $50 per hour.
But, plenty of Raleigh rental property investors willingly spend much of their time in fixing tenant issues, searching for emergency maintenance and repair solutions, hunting down tenants to pay late rent payments, and handling other property management concerns. The value of time spent can easily surpass the price of hiring a professional to manage the property.
Sample Scenario
Let’s assume a professional property manager’s fee for a $1,200 monthly rental would amount to approximately $120 per month. If a Raleigh rental property investor spends 2.5 hours per month in handling the property, their personal time costs more than hiring a professional manager. (In addition, a professional manager’s fees are tax deductible, so the gap is wider than this example.)
On the job, would the same investor perform office tasks that can be executed by someone at a lower pay scale? No. They delegate to another person. Wise business people match the value of work to pay scales. Rental property management should follow the same principle.
Do you work below your pay grade? Contact us to learn more about how we can help you with your rental property management.