> It is possible to hire a company to manage the condo or house, but that is expensive and the profits never quite arrive.
This makes sense if you think about it from a capitalist perspective, though.
Adam owns a condo and rents it out. He makes $500/mo after his expenses. Unless competition for property management is very high (quite the opposite), the "perfect" amount to charge for that service is going to be as close to $500/mo as possible while still getting Adam to pay it.
The most common complaint I've heard about property management firms is that somehow their prices always seem to be somewhere in the 95-105% of net profit for a single well-appointed property.
I've discovered that this is a general rule in any similar industry- time-shares, boat-charters, etc. There are people who are professionals in that industry. They know where the money is, and they get it. We are basically amateurs that they are welcoming to their playing field.
This makes sense if you think about it from a capitalist perspective, though.
Adam owns a condo and rents it out. He makes $500/mo after his expenses. Unless competition for property management is very high (quite the opposite), the "perfect" amount to charge for that service is going to be as close to $500/mo as possible while still getting Adam to pay it.
The most common complaint I've heard about property management firms is that somehow their prices always seem to be somewhere in the 95-105% of net profit for a single well-appointed property.