RentRedi vs property manager—how do they compare?
It’s a new year, and if acquiring more rental properties or streamlining your property management processes is on your resolution’s list, you might be wondering if a property management software or property management company is better for your business.
While there are a lot of factors to consider for each option, fundamentally you should consider the best way to optimize cash flow by streamlining your rental management fees and increasing renter retention.
Of course, these two roads tend to meet at the intersection of property maintenance and management fees.
Other factors certainly weigh in the RentRedi vs property managers equation—such as rent collection and tenant screening— both of which property management software like RentRedi is ideal for, as it provides tenant’s an easy way to apply to your vacancies and pay rent with an app from their smartphone.
However, there’s a lot more that goes into managing rental properties efficiently. When it comes to the best way to manage your rental properties and deciding how RentRedi vs property managers, here is what to consider.
Cost of Management Fees
Of course, the cost of using a property management company will vary depending on the business, but on average fees tend to range from 8-12% of the monthly rent per unit.
Additionally, property management companies also charge a new tenant fee (a month’s rent), lease renewal fees (~ $200), and maintenance fees.
For example, If you are in a city like Kansas City, where the average rent for a 2 bed/1 bath is around $1,300 per month. This means over 12 months you could bring in $15,600. When you hire a property management company, with 8% fee/month and a full month rent gone for tenant placement you bring in $13,156 over 12 months. And this is per unit!
Conversely, RentRedi is a flat rate of $9/month—and there are no hidden fees. You can list your vacancies for free to Realtor.com and Doorsteps, our certified background checks are tenant-paid, lease signing is included, and rent processing fees are not charged to landlords.
Time to Receive Payments
Now, we’ve written a whole guide on online rent collection, which I highly recommend you read after this. Not only does it guide you through the best rental payment features to look for in landlord-tenant software, but it also demonstrates why it’s important for tenants as well.
After all, why make it harder for renters to pay their rent?
However, collecting rent and receiving funds is also important for your business. With a property manager, the time to receive rental payments can take around 8-15 days.
“The standard timeframe for rental property owner payments is between the 8th-10th of each month. Many property management companies pay owners on the 15th of each month or even have an extensive 30-day holding period before paying their rental property owners.”Source
However, with RentRedi, funds are transferred into your account in 4-5 days! You get your money faster and have it deposited directly into your property’s account.
Insight into Maintenance Issues
Maintenance can be a pain point for both landlords and tenants, which means property management companies can come in handy. However, maintenance is also the #1 reason for tenant turnover if not handled properly.
With RentRedi, you have multiple options to ensure you have as much insight and control over maintenance as possible. You can manage repair requests yourself—tenants submit a 5-second video with their request and you can send it directly to your go-to maintenance personnel.
Or, if you want to take a break from maintenance services, you can sign up for our 24/7 emergency or full maintenance coordination to outsource repairs.
Transparency into Your Property Health
While having a property manager can be beneficial in terms of managing your rental properties, using a property management software can provide you more transparency and data into your properties.
RentRedi, for example, offers landlords the ability to create custom reports so you can drill down and access the precise data you need. This means you can quickly access important data regarding rent, payment history, maintenance repairs, and property details directly from your dashboard.
Further, our dashboard provides at-a-glance metrics—like expiring leases and overdue rent—so the health of your properties can be quickly assessed and action can be taken. You can also manage and see all repair requests, pending applications, calendar events and meetings, and important tasks.
Control Over Your Property Business
With a property management company, there will be someone (or another business entity) managing your day-to-day operations, but it doesn’t necessarily provide you more control over your business.
With RentRedi, you can set up property-specific and security deposit payment accounts so your funds are properly attributed, screen tenants so you know who is living in your property, and add teammates for free so you can even manage your whole team.
Plus, you can directly access all your data and information from your RentRedi dashboard and mobile app so you can manage your business from anywhere.
RentRedi vs Property Manager—Which is Best?
In the RentRedi vs property managers debate, we tend to lean towards RentRedi. Of course, property managers bring a lot of value to managing your rentals, but ultimately, property management software like RentRedi can help you save on management fees when you list your own vacancies, run tenant screening, collect rent, and provide direct transparency into the health of your properties.
It’s best to look for property management software for landlords that can not only help you fill vacancies, collect rent online, and manage your properties efficiently while also reducing management fees.
You can save $2,444/per unit/month in management fees vs $9/mo for all units with RentRedi!
However, if you do decide to go the property manager route, or you are a property manager, RentRedi is an excellent system that can help you operationalize your property management business for multiple landlords!