The Milwaukee property market is not new to shifts and changes. As the demands of property owners evolve and technology creates fresh opportunities, there is a new approach to property management that’s been gaining traction: the hybrid property management system. This article dives into a case study comparing the hybrid approach to both self-management and traditional property management, specifically within the Milwaukee market.
The Milwaukee Property Management Scene
Milwaukee boasts a dynamic property market with a myriad of management companies like ABC Management Inc., Bartsch Management, Bell Property Management., and Bieck Management., to name a few. Each offers a blend of services tailored to a wide variety of clientele. Other notable names include Welcome Home Milwaukee, Citywide Rentals, DAK Properties, Jomela Properties, MPI Property Management, and Northland Management. These companies have serviced the Milwaukee community for years, leveraging traditional property management methods.
Traditional Property Management: A Tried and True Approach
Traditional property management, exemplified by firms like Ogden & Company, Inc., Optimum Property Management, Performance Asset Management, and Porch Light Property Management & Real Estate, typically provides a comprehensive suite of services. From tenant acquisition, rent collection, to maintenance and legal support, these companies take on the full spectrum of property management tasks. For many property owners, this approach is a relief as it requires minimal oversight and ensures the property remains in top-notch condition.
However, the convenience of this all-inclusive approach comes at a cost. Property owners often shell out significant amounts for these services, and in the Milwaukee market, the average property management cost is approximately $131/unit/month. For a portfolio of six units, this equates to $9,432 annually!
Self-Management: Maximum Control, Maximum Responsibility
Then there’s the route of self-management, where property owners take on all responsibilities. While this might save on costs, the workload can be substantial. A self-managing landlord in Milwaukee might expect 10-15 maintenance requests a year, 2 turnovers requiring about 10 showings, rent collection, and bookkeeping. Often, with proper rental management software, such as PortfolioBay, managing these tasks won’t be too burdensome.
However, the DIY approach has its pitfalls. What happens during personal vacations or during peak work periods? Herein lies the vulnerability of self-management: the lack of a safety net.
Enter Hybrid Property Management
This is where hybrid models, like the one proposed by PortfolioBay, can bridge the gap. When a property owner self-manages, they utilize software to automate tasks like payment, accounting, and lead management for turnovers. However, the genius of the hybrid model is its on-demand service outsourcing. If the landlord is unavailable, they can outsource specific tasks to PortfolioBay for a fee. The price range for these services often lies between $70 to $200, making it substantially cheaper in many instances than traditional property management.
The financial benefits are clear. If a landlord chooses to use software for remote management but outsource all on-site tasks, they’re looking at an annual expense of roughly $2,600. This contrasts sharply with the potential $9,432 one might incur with traditional property management for a six-unit portfolio.
Away Mode for Hassle-Free Property Management
In additional to the on-demand services, PortfolioBay also offers Auto-pilot feature, also known as Away Mode, for landlords to effortlessly handle unexpected maintenance issues while they are away. The landlord simply toggles on this feature while they expect themselves to be unavailable for extended period of time. Should there be any maintenance requests during this period, the PortfolioBay team will handle them. If the cost aligns with your pre-approved budget, we’ll take care of it seamlessly. For anything beyond your set budget, we’ll reach out to you for additional approval.
Unlike traditional property management services with recurring fees, with Away Mode, you’re charged only when we provide actual maintenance services. Gone are the days of fretting over property issues while vacationing or being in remote areas with limited communication. Enjoy your trips without the burden of unexpected maintenance concerns.
Conclusion
The Milwaukee property management market stands at an intriguing crossroads. As technology continues to play an ever-increasing role in property management, the hybrid approach offers a compelling middle ground between the complete control of self-management and the comprehensive, hands-off nature of traditional property management. For property owners in Milwaukee, it’s an exciting time of choices, and the hybrid model is certainly one worth considering.
