Any good property management company should be able to bring some savings to their clients. But the differentiator between a good management company and a great one is in the amount of savings they can bring you. Would you prefer to save A LOT or A LITTLE on your monthly expenses?
At LBPM, there are a number of ways we provide our clients a better bottom line, and one of the most important ways is through our relationships with vendors.
Economies of Scale
As a professional property management company, we enjoy an economy of scale that individual, DIY property owners cannot reach. Vendors will give you higher, published rates if you call them straight out of the Yellow Pages or from the number on their website or Yelp page. But we are almost always able to negotiate much better pricing simply because of the high volume of work we send their way. (In fact, we’re able to keep some of our vendors busy full-time!)
Generally speaking, you’ll pay far less for regular maintenance issues when you’re working with a professional management company. For example, clearing a drain might only cost $75, instead of the plumber’s regular $150 rate. Our vendors get so much business from us that they can afford to do the work for much less and still turn a profit. And all those savings get passed along to you.
Individual property owners simply don’t have the same buying power to negotiate such lucrative contracts for the property. This simple reality saves our clients thousands of dollars every year on maintenance costs for their investment. When you’re looking to hire a painter or a roofer or a laundry service, we will be able to push the prices down for you.
Over the past few years, we have developed relationships with several new vendors that provide installation services and programs designed to conserve energy and resources. Whether it’s low-flow toilets, lighting retrofits or insulation on your plumbing and weather stripping, these things will save money because you’re using less electricity, gas, and water. Plus, you may qualify for government rebates and incentives for putting these measures in place. It’s a win-win.
Most vendors you’ll find are hard-working folks doing their best to run a small business. They work long hours and juggle multiple schedules, trying to keep as many of their clients happy as possible. But that doesn’t work so well when you’re the one left waiting for a phone call, or trying to reschedule their missed appointment.
While a particular vendor may not be as responsive to an individual owner, vendors WILL work hard to maintain their relationships with the property management companies they service since that’s where the bulk of their revenue comes from. Simply put, we have a certain degree of leverage with our vendors – they will do whatever it takes to keep us happy. And that benefits you — our client.
Our vendors will be courteous with tenants, clean up after themselves, and get the job done quickly and correctly. And they’ll do the work for a better price than you’ll find anywhere else.
If you’d like to talk more about how a professional property management company can save you money, contact us at LBPM and we’d be glad to answer your questions.