As a landlord, you can choose either one of these two options for managing your rental property. Do it yourself, or hire a company to do it for you.
If you hire a property management company, they will ensure that you can maximize your rental income, your vacancies are kept to a minimum, and any necessary maintenance and repairs are made. But how much does it cost to hire a property manager? The rates and fees charged by property management companies will be tackled in this piece.
Property Management Fees
Firstly, you should be aware that management fees vary greatly based on place and company. However, property management companies usually charge a national average of 5-12% of the monthly rent collected.
An excellent introduction; however, it doesn’t go far enough into the details. Rather than focusing solely on how much it costs, it is important to compare fees with services if you want to know what you are receiving for your money.
The fees that property managers charge pay form things such as marketing and advertising for new tenants, collecting rent payments, assessing and background investigations for tenants, tackling tenant requests and concerns, completing maintenance requests and repairs, performing routine inspections, serving legal paperwork such as leases and notices of violation, and handling other administrative tasks. You should read the fine print and ask lots of questions before deciding on a property management company because not all of them provide these and other services.
Additional Fees to Consider
When estimating the cost of a property management company, you need to keep in mind that they may demand either a flat fee or a fee determined by a percentage of rent collected – along with additional fees for specific services. For example:
- Leasing and Tenant Placement Fees: This fee is a one-time payment that is usually the same as one month’s rent. This charge includes the marketing of your property, tenant inspections, and lease preparations.
- Maintenance Fees: These fees can be utilized to fix anything from a faucet that leaks to a roof that needs to be restored. You need to find out how the management company assesses maintenance fees and if there is a cap on the amount they will charge for each fix.
- Tenant Late Payment Fees: Property management companies may impose a penalty for late payment if tenants fail to settle their rent on time. Late penalties are usually a percentage of the rent and vary by company.
- Advertising Fees: This fee incorporates photography for listing, advertising space on the web, and print materials. Advertising fees are sometimes charged on top of other expenses, so ask about that before making a final decision.
There are a lot of people who don’t like the concept of having a third party manage their rental property. Hiring a professional manager can be worthwhile to invest in, mainly if you place a high value on your time. Working with an experienced manager can prove to be a wise move, so it’s usually a great idea to do it. Making it a financially sound decision down the road. A property management company will maintain your property’s value high and ensure a hassle-free rental experience. This is true whether you own one property or dozens.
Real Property Management Teyata is here to assist those in the Sudden Valley region who are interested in learning more about the benefits of hiring professional property management. Our experienced team, variety of services, and established strategies may help you convert your rental property into an income generator investment. Contact us online or call us today! 360-856-1010
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