The amount of time you spend on your rental might surprise you. How much time do you spend managing your properties? If you calculate everything involved from leasing to move-out inspection the time adds up quickly. Compare your time to the average time others spend on managing their rentals. National averages are based on data from NAPRM on one rental property per year.
LEASING TIME
Based on national averages the leasing process of the items listed below will take approximately 40 hours per year or 3.3 hours per month to lease one property. Here are the activities involved in leasing a property:
Marketing
- Rental Rate Analysis
- Creating vacancy ads
- Posting to rental websites
- Showing vacancies
- Preparing applications
Tenant Screening
- Credit Reports
- Criminal Reports
- Calling references
- Employment verification
- Lease agreement review
Lease Signing & Move-In
- Scheduling Inspections
- Repairs & Rekeying
- Cleaning Property
- Coordinating Move-In
- Sign lease and collecting deposits
PROPERTY MANAGEMENT TIME
Based on national averages the on-going property management of the items listed below will take approximately 18 hours per year or 1.5 hours per month to manage one property. Here are some of the activities included in managing a property on a monthly basis:
Rent Collection
- Collecting and processing rent payments
- Late payment calls and collections
- Late postings and default mailings
- Reviewing deposits, rent payments and property income statements
Property Management
- Tenant Issues – complaints and neighbor complaints
- Preparing records for tax reporting
- Lease renewals
- Ongoing inspections
Maintenance & Repairs
- Tenants repair requests
- Finding contractors and bids
- Scheduling repairs and verify work completion
- Invoicing and payables for repairs and maintenance
Evictions
- Time spent with attorney on tenant compliance
- Legal Postings
- Court hearings
- Coordination with County Sheriff
Move – Outs
- Inspections and documentation
- Scheduling contractors and bids
- Overseeing work completion
- Security deposit refund, additional charges and reconciliation
CALCULATE YOUR TIME
Now calculate your time spent on each rental property and multiple by your hourly wage or use the average below:
Time it takes to Manage
Leasing Time = 3.3 hours per year / 40 hours per year
Property Management = 1.5 hours per month / 18 hours per year
Total Time Commitment = 4.8 hours per month / 58 hours per year
Value of your Time
Multiply your annual or monthly wage by the number of properties you currently own to calculate your time costs.
Example: One property X 4.8 hours per month X $50 per hour (or what you earn per hour) = $240 per month or $2880 per year to manage one property.
Savings
$240 per month minus the $89 per month management fee you would pay to Renters Place saves you $151 per month or $1812 per year for just ONE property!
