You, the landlord, can take one of two approaches to managing your rental property. There are two options: doing it yourself or hiring a company to get it done.
Maximizing your rental income, reducing unoccupied time, and having maintenance and repairs taken care of are just a few advantages to hiring a property management company. But how much does it cost to hire a property manager? The rates and fees charged by property management companies will be dissected here.
Property Management Fees
First, you need to know that management fees are highly flexible depending on the location management company. Yet, property management companies normally ask for a national average of 5-12% of the monthly rent collected.
That’s an ideal place to begin, but it doesn’t give the whole tale. Due to this, you shouldn’t just look at how much it costs; you should also consider how the company’s services measure up against what it costs.
Fees charged by property managers typically go toward covering the expenses incurred in acquiring new tenants, collecting rent payments, marketing and advertising for new tenants, tenant screening and background checks, reacting to tenant requests and inquiries, handling maintenance requests and repairs, conducting regular inspections, giving legal paperwork such as leases and notices of violation, and other administrative tasks. All property management companies may or may not include these and other services in their contracts, so it’s important to ask plenty of questions and study the fine print.
Additional Fees to Consider
When calculating the cost of a property management company, it’s also important to factor in that they may charge either a flat fee or a fee based on a percentage of rents collected – plus extra fees for specific amenities. As an illustration:
- Leasing and Tenant Placement Fees: This fee is a one-time charge typically equal to one month’s rent. This cost will involve marketing your property, vetting potential tenants, and negotiating the lease.
- Maintenance Fees: Everything from a dripping faucet to a leaking roof might be covered by your maintenance fee. Check with your property management company to see if they have a cap on the amount they will charge for repairs and how they assess maintenance fees.
- Tenant Late Payment Fees: Property management companies may have the right to put late fees on tenants whose rent is not paid by the due date. Fees for being late on rent payments are often assessed as a percentage of the rent.
- Advertising Fees: Fees for advertising include listing photographs, online and print advertising space, and other promotional materials. Before signing anything, ensure you understand whether or not there will be additional advertising fees.
Some owners might feel worried about engaging a management company to manage their rental property. If you place a high value on your time, hiring a professional manager may be the best course of action. Recruiting an experienced manager may seem like an expensive upfront investment, but the long-term payoff often makes it worthwhile. Making it a financially sound decision. A property management company will maintain the value of your property and establish a hassle-free rental experience. Whether you have one rental home or a hundred, this is true.
Here at Real Property Management Magic Valley, we’re happy to talk to anyone in Kimberly or the surrounding region about the many ways in which professional property management may help. We hope that our experienced team, broad offerings, and proven tactics can assist you in turning your rental property into a lucrative investment. Contact us online or call us immediately! 208-734-4001
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