As a landlord, you can choose between two different methods for managing your rental property. You have the option of doing it yourself or hiring a company to do it for you.
There are various positives to hiring a property management company, such as maximizing your rental income, decreasing vacancy time, and supervising maintenance and repairs. But how much does it cost to hire a property manager? This post will examine the rates and fees charged by property management companies.
Property Management Fees
The initial point to keep in mind about management fees is that they vary greatly from place to place and company to company. However, property management companies regularly collect a national average of 5-12% of the monthly rent collected.
It’s a good place to begin, but it doesn’t give anything away about the story. In light of this, it’s crucial to consider a company’s expenses with what they offer or what you are truly getting for your money, not just how much it costs.
For most property managers, the charges they collect are utilized to pay for the expenses of marketing and advertising for new tenants, collecting rent payments, conducting tenant screening and examinations, solving tenant requests and demands, dealing with maintenance requests and fixes, carrying out frequent inspections, delivering legal paperwork such as leases and notices of breach, and offering other administrative assistance. These and other services are not guaranteed to be provided by all property management companies; therefore, it’s important to read the particulars carefully and ask lots of inquiries before making a decision.
Additional Fees to Consider
When looking into the cost of a property management company, it’s also imperative to keep in mind that they may charge either a flat fee or a fee depending on a percentage of rent collected – plus extra expenses for some services. For example:
- Leasing and Tenant Placement Fees: This charge is typically the same as one month’s rent and is a one-time payment. This fee encompasses the marketing of your property, tenant screening, and lease paperwork.
- Maintenance Fees: Maintenance fees may include little fixes like a dripping faucet or major overhauls like replacing the roof. You ought to check with your management company about how they assess maintenance fees and whether there is a cap on the amount they will charge for every repair.
- Tenant Late Payment Fees: In the event that rent is not paid by the due date, property management companies may charge late fees to tenants. Overdue penalties can vary depending on the company and are typically a percentage of the rent.
- Advertising Fees: This fee contains taking pictures for listing, online marketing space, and promotional materials. Be sure you understand the total costs, including any additional advertising fees, prior to signing any agreements.
Some owners are not comfortable with the idea of hiring someone to manage their rental property. If you place a high value on your time, hiring a professional manager can be a wise choice. In the long run, the advantages of engaging with an experienced manager can substantially outweigh the expense, making it a financially sound decision. A property management company will protect the value of your property and ensure a hassle-free rental experience. This holds true no matter how many properties you own.
Real Property Management SW Coast is here to help anyone in North Naples or the surrounding areas who is curious about the many benefits of hiring expert property managers. Our experienced employees, extensive services, and reliable strategies may help you convert your rental property into an income-producing asset. Contact us online or call us today! 239-790-2840
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