As a landlord, you can choose between two different methods for managing your rental property. You can do it yourself or hire a company to do it for you.
Hiring a property management company may help you in numerous manners, such as maximizing your rental income, decreasing your vacancies, and taking care of maintenance and repairs. However, how much does it cost to hire a property manager? In this piece, we’ll examine the rates and fees charged by property management companies.
Property Management Fees
Initially, you need to understand that management fees can vary widely from place to place and company to company. On the other hand, property management companies often charge a national average of 5-12% of the monthly rent collected.
It’s a good introduction, but it just tells part of the plot. That’s why it’s imperative to take into account not just how much it costs but also how much value you get in exchange.
The expenses of marketing and advertising for new tenants, collecting rent payments, performing background checks and screening tenants, dealing with tenant requests and inquiries, answering maintenance requests and repairs, doing periodic inspections, giving legal paperwork like leases and notices of violation, and delivering other administrative services are all included by the fees that property managers charge. However, not all property management companies provide these and other services, so it’s vital to study the fine print and ask plenty of questions before making a decision.
Additional Fees to Consider
When looking into the cost of a property management company, it’s imperative to remember that they may charge either a flat fee or a fee depending on a percentage of rent collected, with possible additional charges for certain services. For illustration:
- Leasing and Tenant Placement Fees: This fee is a single payment that is often equivalent to one month’s rent. This fee includes the marketing of your property, tenant screenings, and lease agreements.
- Maintenance Fees: These charges might be used for everything from a new roof to the repair of a leaky faucet. You need to ask about your management company, how they assess maintenance fees, and whether there is a cap on the amount they will charge per repair.
- Tenant Late Payment Fees: Property management companies have the right to apply late payment fees when tenants fail to send in their rent on time. Late fees vary by firm and are often expressed as a percentage of the rent.
- Advertising Fees: Printed material, online space for ads, and photography for listing are all covered in these advertising fees. Prior to accepting anything, ask if there are any additional advertising fees involved.
Some owners may feel uncomfortable about the idea of engaging someone to manage their rental property. Hiring a professional manager can prove to be a smart decision, especially if you place a high value on your time. Hiring an experienced manager can be a financially sound move in the long run since the benefits typically outweigh the costs. A hassle-free rental experience and protection of your property’s value are provided by a property management company. It doesn’t matter if you have one house or ten.
Get in touch with Real Property Management Regions if you’re in King George County or the nearby area and want to learn more about the benefits of working with a professional property manager. Your rental property could be more profitable with the help of our skilled staff, a comprehensive set of services, and tried-and-true methods. Contact us online or call us today! 804-491-3348
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
