As a landlord, you are given two possibilities for managing your rental property. You can either take on the task yourself or hire a company to deal with it for you.
Hiring a property management company offers numerous advantages, such as maximizing your rental income, reducing vacancy period, and taking care of maintenance and repairs. Nevertheless, how much does it cost to hire a property manager? The rates and fees charged by property management companies will be mentioned below.
Property Management Fees
Management fees can vary a lot according to your location and the company you are dealing with. However, property management companies commonly charge a national average of 5-12% of the monthly rent collected.
That’s a decent introduction, but it doesn’t tell the complete narrative. That’s why it’s crucial to compare the services provided by a company to the prices they charge. That is to say, it’s not enough to simply look at how much it costs; you also need to evaluate the value you’re receiving.
For most property managers, the fees they charge are utilized to pay for things like marketing and advertising for new tenants, collecting rent payments, doing tenant screening and investigations, dealing with tenant requests and inquiries, handling maintenance requests and repairs, conducting regular inspections, providing legal paperwork such as leases and notices of violation, and performing other administrative services. However, these and other services may or may not be incorporated for all property management companies, so it’s best to thoroughly peruse the details and ask numerous questions before hiring one.
Additional Fees to Consider
When considering the cost of a property management company, it’s worth remembering that they may charge either a flat rate or a fee based on a percentage of rent collected – along with extra fees for specialized services. For instance:
- Leasing and Tenant Placement Fees: This fee is charged once and usually corresponds to one month’s rent. This charge includes the marketing of your property, tenant inspections, and lease negotiations.
- Maintenance Fees: Maintenance fees can pay for anything from fixing a dripping sink to constructing a roof. You have to inquire with your management company how they assess maintenance fees and whether there is a cap on the amount they demand for every fix.
- Tenant Late Payment Fees: Property management companies may impose late payment penalties when tenants fail to settle their rent promptly. Late payments are usually a percentage of the rent and can change depending on the company.
- Advertising Fees: This fee includes photography for listing, internet marketing space, and printed ads. It is an excellent move to find out whether there will be any additional advertising fees before signing any contracts.
The idea of hiring a property manager to manage their rental property may make some owners apprehensive. Hiring a professional manager may be the best option, particularly if you place a high value on your time. An experienced manager‘s benefits may well outweigh their fees, making it a financially sound choice in the long run. A property management company will safeguard the value of your property and create a hassle-free rental experience. This holds true regardless of the number of properties you own.
Real Property Management Strive is a great resource for anyone in Colbert or the surrounding area who is interested in learning more about the benefits of professional property management. You may profit from your rental property with the help of our knowledgeable personnel, extensive services, and tried-and-true strategies. Contact us online or call us today! 509-396-7021
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