You own a condo, now you want to have it managed. Where is the best place to manage condos in Chicago? OwnACondo.com has an affiliate company called RE Management that specializes in the managing of residential property, especially managing condominiums in Chicago. They have over 4,000 condo units under their belt and have been in the business of managing for well over twelve years.
Managing condos in Chicago properly can be the biggest thing between a profitable investment and one that goes south. The management company plays such a pivotal role in the success of the condo investment. They will first start the search for a tenant for the property. If the tenant fits all the criteria, the condo management company will have a lease signed. Normally the lease runs twelve months.
The typical fees for a company to manage your condo are as follows; there is a fee for collecting monthly rent for the unit. This is roughly 5% to 6% of collected rental income. For instance, let’s say the rent is $1,000 a month and $12,000 a year is collected. 5% is $600 for the management company. If the tenant vacates and the unit has to be re-rented, the fee is normally one month’s rent. In this example the management company renting the condo would receive the full $1,000. If the condominium needs to be renovated, the management company will oversee the construction and charge typically ten percent of the construction cost. So if the cost for rehabbing the condominium is ten thousand dollars, the management company would make $ 1,000.
One might initially think that these figures may be high, but when you think about having to do all the work yourself, the $2,600 a year may be well worth your time and effort. Secondly, the management company has so many contacts in the industry, that ultimately they can get things done faster and for less money almost making their fees justified because it might cost the same if you have to do it your self.
Managing condos in Chicago is an easy task for a professional but you have to hire the right one. Leaving an investment like real estate in the hands of a bad property manager is the worst decision you could make. Do some background checks on the company you’re going to hire and get some references. If a company cannot provide these, move on to the next one.