March 4, 2023

Do Outsourcing Property Management Services Increase Revenue?

Property Management Services

Different duties can be outsourced to reduce the workload on your internal team and to save money. 

An organization that manages properties on behalf of owners, can offer property management services. The property management company can offer a variety of services, from basic rent collection to full-service management, that are customized to the owner’s requirements.

However, the question is, “Does outsourcing property management services really increase revenue?”

Yes, outsourcing property management services can increase revenue for property owners. Higher occupancy rates, longer leases, and better rental rates can be the outcome of their knowledge and resources, which will generate revenue for property owners.

So, without delay let’s talk about it below!

How Do Outsourcing Property Management Maximize Revenue?

Outsourcing property management services can be a strategic move for property owners who want to maximize their revenue potential. 

Utilizing the marketing know-how of property management firms is one of the main advantages of outsourcing property management services.

Furthermore, based on neighborhood market conditions and property characteristics, property management firms can assist property owners in setting reasonable rental prices. 

According to a study, landlords who contract out property management typically pay a fee that ranges from 8% to 12% of the monthly rent.

Many property owners and managers are considering outsourcing as a way to increase their revenue because of the advantages it offers, including cost savings, increased effectiveness, and also better tenant satisfaction.

Approximate Cost of Property Management Services

The cost of property management services can vary based on a number of variables, such as the property’s location, type, level of services, and fee structure of the management company. 

Typically, monthly rent is divided by a percentage that can range from 4% to 12% to determine property administration fees.

Moreover, the level of owner involvement needed and the complexity of the property’s management requirements are additional elements. So, it could affect the price of property management services.

Property owners can gain from increased rental revenue, lower running costs, and fewer legal issues by outsourcing property management services, all of which can eventually result in a higher return on investment.

Procedure to Hire Property Management Services

Here are some actions you can take if you’re thinking about using property management services to handle your leased property:

  • Start by doing some study on local property management firms. Look for businesses that have a good reputation, a history of success, and expertise managing properties like yours.
  • Once you’ve chosen a few potential businesses, thoroughly go over their management agreement. The agreement’s conditions, the management fee schedule, and the services offered are all described in this document.
  • Contact the property management firms to arrange a consultation to go over your property and your management requirements. This is a chance to learn more about the company’s offerings, ask questions, and assess their level of professionalism and knowledge.
  • Choose a property management business based on your investigation, consultations, and reference checks. Once you’ve made your choice, execute the management contract and start managing your property with the business.

5 Advantages of Property Management

A property management service has the following major advantages:

1. Better tenant screening

Property managers are highly skilled at vetting prospective residents. They are able to spot red flags in tenant applications that a particular owner might overlook, which lowers the likelihood of renting to troublesome tenants.

2. Timely rent collection:

Property managers handle rent collection for landlords, ensuring that tenants pay rent on time. This helps to avoid cash flow problems and ensures that landlords receive rental income on schedule.

3. Effective maintenance and repairs: 

Managing maintenance and repairs for rental properties is the responsibility of property administrators. As a result of their long-standing connections with contractors, they are able to resolve any problems as they emerge with efficiency.

4. Greater convenience: 

They are free from the burden of selecting tenants, paying rent, managing upkeep and repairs, or handling legal matters. In doing so, they are able to concentrate on other aspects of their lives or businesses.

5. Legal observance: 

Property managers are aware of all state and municipal regulations pertaining to the rental of residential and commercial properties. They can aid in making sure that landlords abide by rules regarding things like security deposits, eviction notices, and equitable housing laws.

Who Are The Users of Property Management Services

The users of property management services are individuals or organizations that own, lease or manage properties and need assistance with managing their properties.

  • Individual property owners: 

This group includes individuals who own one or a few rental properties and need help with tasks such as tenant screening, rent collection, maintenance, and repairs.

  • Real estate investors: 

Real estate investors frequently own numerous properties and may require help with tasks such as posting job openings, collecting rent, screening tenants, and maintaining the properties.

  • Commercial property owners: 

Commercial property owners may include landlords who own office buildings, retail spaces, or industrial properties. They may need help with tasks such as leasing, tenant screening, and property maintenance.

  • Non-profit organizations: 

Non-profit organizations may own or manage affordable housing properties and need help with tasks such as rent collection, tenant screening, and property maintenance.

Estimates of The Global Property Management Service Market

  • According to research, the residential property management sector will make up the largest portion of the global property management service industry in 2021, with a market value of about $70 billion.
  • With a market size of approximately $36 billion in 2021, commercial property management is another important segment of the global property management service market.
  • Another significant market segment is retail property management, which estimates will have a worldwide market value of about $11 billion in 2021.

Property Management Service: Outsourcing vs In-House 

Here is the key differences between outsourcing property management and in-house property management:


Outsourcing Property Management

In-House Property Management


Outsourcing property management is typically less expensive because the property management company can leverage economies of scale and specialized expertise.

In-house property management can be more expensive because the company must hire and train staff, provide benefits, and invest in software and systems.


Outsourcing property management can provide access to specialized expertise and resources that may not be available in-house.

In-house property management allows the company to develop expertise and knowledge of its specific properties and tenants.


Outsourcing property management frees up time for the company to focus on core business activities, rather than the day-to-day tasks of property management.

In-house property management requires significant time and attention from the company’s staff, which can be a distraction from core business activities.


Outsourcing property management allows the company to adjust its level of service up or down based on its needs, without the need to hire or lay off staff.

In-house property management may be less flexible, as the company must maintain a certain level of staffing regardless of its needs.


Tips To Outsource Property Management

Here are some tips for outsourcing property management services:

  • Research and compare property management companies: Do your research and compare several property management companies before choosing one. 
  • Review contracts carefully: Review the contract carefully before signing it. Make sure you understand the terms and conditions, including the fee structure, services provided, and termination clauses.
  • Communicate regularly: Make sure you have regular check-ins with the property management company to discuss any issues or concerns and to ensure that expectations are being met.
  • Conduct periodic reviews: Conduct periodic reviews of the property management company’s performance. 
  • Build a strong relationship: Building a strong relationship with the property management company can help ensure a successful outsourcing experience.

To Sum Up

In conclusion, outsourcing property management services can offer several benefits to property owners, including cost savings, access to specialized expertise, and increased flexibility. 

If you want to outsource this service then contact us immediately. We can be your future solution.


1. Why should I outsource property management services?

Outsourcing property management services can offer several benefits, including cost savings, access to specialized expertise, increased flexibility, and reduced risk.

2. What is the role of a property manager?

The role of a property manager is to oversee the day-to-day operations of a property on behalf of the property owner. This includes managing tenants, handling maintenance and repairs, collecting rent, and ensuring legal compliance. The property manager also acts as a liaison between the property owner and tenants.

3. Is property administration a worthwhile profession?

Revenues are increasing in this fast-growing sector. Furthermore, due to the dynamic nature of property management jobs—which involve handling people and money while working in the field and utilizing software—and the high demand for qualified candidates. People who are tech-savvy will have more bargaining power and earn more money.