There are two possibilities available to you as a landlord for managing your rental property. You can select either do it on your own or hire a company to do it for you.
Aside from maximizing your rental income and decreasing your vacancy rate, hiring a property management company to deal with maintenance and repairs is a wise move. However, how much does it cost to hire a property manager? In this post, we will discuss the rates and fees charged by property management companies.
Property Management Fees
The first thing you have to know about management fees is that they can fluctuate greatly depending on location and company. Nonetheless, property management companies frequently charge a national average of 5-12% of the monthly rent collected.
That’s a fantastic place to start, but it doesn’t tell the complete tale. That’s the reason you shouldn’t just look at how much it costs; instead, you should also consider the value you’re getting from each company’s fees and services.
For several property managers, the fees they charge are utilized to cover the expenses of marketing and advertising for new tenants, collecting rent payments, interviewing prospective tenants, dealing with tenant requests and concerns, coordinating maintenance requests and repairs, performing routine inspections, sending legal paperwork such as leases and notices of violation, and taking care of other administrative tasks. Property management companies often offer these and other services, but before signing a contract, it’s vital to read the fine print and ask questions.
Additional Fees to Consider
When thinking about the cost of a property management company, you need to remember that they may charge either a flat fee or a fee based on a proportion of rents collected – plus additional fees for specific amenities. As an example:
- Leasing and Tenant Placement Fees: This fee is a one-time payment as good as one month’s rent. Incorporated in this fee are marketing your property, tenant valuations, and lease documents.
- Maintenance Fees: Everything from a leaking faucet to replacing an outdated roof are all part of these fees. You should inquire with your management company how they assess maintenance fees and whether there is a cap on the amount they can charge for each fix.
- Tenant Late Payment Fees: Property management companies may charge a late fee to tenants who are late with their payments. The amount of late charge is typically a percentage of the rent; however, this might vary widely depending on the company.
- Advertising Fees: This fee covers photography for listing, advertising space on the internet, and print materials. Before agreeing to any contracts, make sure you understand any potential additional advertising fees.
There is a common reluctance among owners to hire somebody to manage their rental property. Hiring a professional manager can prove to be the best option, mainly if you place a high value on your time. The benefits of working with an experienced manager can significantly outweigh the expenses, making it a financially sound decision in the future. A property management company will preserve the value of your property and create a hassle-free rental experience. This is true whether you have one property or multiple.
If you are searching for property management in Kingsville or nearby areas, Real Property Management Shoreline is available to assist you. You may be able to turn your rental property into an income-generating investment with the help of our hardworking staff, extensive amenities, and reliable methods. Contact us online or call us right away! 361-885-0500
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