Tired Of High Property Management Costs? Read This

Being a commercial real estate investor in Atlanta can be rewarding, but rising property management costs may stretch your wallet thin. For many, these costs turn potential profits into headaches. If you’re tired of seeing property management expenses eat into your returns, you're not alone. Terra Alma, a leading CRE Advisory in Atlanta, helps clients turn these challenges into opportunities.

In this blog, we’ll break down why property management fees are high, how real estate advisory services like Terra Alma can help, and what you can do to cut these costs. Ready to reclaim your CRE returns? Keep reading.

Understanding Property Management Costs

Property management fees in Atlanta typically range from 8% to 12% of rental income. That might sound minor, but it can add up to tens of thousands of dollars each year.

Property management companies handle tasks such as tenant screening, rent collection, property maintenance, and more. While essential, these services come with a price tag. In Atlanta's competitive market, our real estate advisory services help investors like you find ways to save while maintaining quality service.

“Property management fees may feel the hidden tax on your investments,” says Anna Hunt, a leading real estate advisor at Terra Alma. “But when you dig deeper, there are ways to reduce these costs without sacrificing quality.”

Ways to Reduce Property Management Fee

1. Assess the Necessity of Each Service

One of the first steps to reducing property management fees is to evaluate which services you genuinely need. Many property management firms offer all-inclusive packages, but you might be paying for services you rarely use.

For instance:

• Do you need a monthly property inspection, or would quarterly suffice?

• Are there certain tasks, like tenant communication or minor maintenance, that you or your team can handle?

Switching to an “A La Carte” model, where you pay only for the services you need, can be cost-effective.

2. Consider DIY Property Management

In Atlanta, real estate advisory experts recommend smaller investors explore DIY property management as an option. If you own one or two rental properties, handling property management yourself could be a viable option.

However, it’s essential to weigh the time and effort DIY management requires. Terra Alma provides consulting and resources to make self-management smoother, even offering training on tenant management, basic maintenance, and legal compliance.

3. Leverage Technology for Cost-Effective Solutions

Different tools like online rental payment portals, maintenance request platforms, and tenant screening apps, can simplify property management tasks.

For example:

• TenantCloud offers affordable options to manage rent payments and maintenance requests.

• Zillow Rental Manager provides background checks and listing services, reducing your dependency on full-service managers.

Our commercial real estate advisory in Atlanta recommends using these solutions to make the job easier.

4. Shop Around for Competitive Rates

Not all property management firms in Atlanta charge the same fees. You can trust Terra Alma for stress-free property management. We charge a nominal fee for tenant placement, lease renewals, maintenance markup, and more. Moreover, we also offer custom packages based on your specific needs.

5. Invest in Preventive Maintenance

One of the biggest hidden costs in property management is reactive maintenance. Waiting for things to break before fixing them often leads to higher expenses. Instead, consider preventive maintenance.

Regular inspections, timely repairs, and upkeep of essentials like HVAC, plumbing, and electrical systems can prevent costly issues. Terra Alma advocates for preventive strategies as part of our real estate advisory in Atlanta, helping you proactively manage your assets.

FAQs

1. Why are property management fees high in Atlanta?

Property management costs are high because of Atlanta’s competitive rental market and rising labor and maintenance expenses. Many companies offer full-service packages but you can choose a customizable package for your needs.

2. Can a real estate advisory save me money on property management?

Yes! Terra Alma specializes in identifying cost-saving opportunities, managing operations, and leveraging technology to reduce costs.

3. How much can I save by self-managing my properties?

Self-managing can save you around 10% on fees. However, it’s crucial to consider your time, legal responsibilities, and ability to handle tenant issues effectively.

4. What tech tools help reduce property management costs?

Tools like TenantCloud and Zillow Rental Manager help with rent collection and tenant screening. These tools reduce reliance on full-service property managers, cutting costs.

5. Is preventive maintenance worth the investment?

Absolutely. Preventive maintenance prevents larger repairs down the road. Inspections and routine upkeep are less costly than emergency repairs.

Conclusion

If you’re struggling with high property management costs, it’s time to reconsider your approach. Working with an expert in commercial real estate advisory in Atlanta can help you identify where you’re overspending and how to implement smarter strategies. Terra Alma has helped many Atlanta-based property owners achieve financial goals without draining profits.

Atlanta’s real estate market is competitive. But you can reduce costs, increase profitability, and build a sustainable real estate portfolio with the right approach.

For more information on our CRE Advisory in Atlanta, call us now and start your journey toward smarter property management.