There are two routes you can take as a landlord for managing your rental property. It’s up to you whether you want to do it yourself or hire a company to handle it for you.
There are numerous rewards to hiring a property management company, such as maximizing your rental income, reducing vacancy rate, and dealing with maintenance and repairs. However, how much does it cost to hire a property manager? The rates and fees charged by property management companies will be discussed below.
Property Management Fees
First and foremost, management fees are highly variable from one location and firm to the next. On the other hand, property management companies generally charge a national average of 5-12% of the monthly rent collected.
That’s a great starting point, but it doesn’t give the whole picture. For that reason, you shouldn’t just look at how much it costs; you should also consider the value you’re getting from the company’s services.
Several property managers use the money they charge to pay for things like marketing and advertising for new tenants, collecting rent payments, performing tenant screening and verification procedures, reacting to tenant requests and concerns, coordinating maintenance requests and repairs, conducting regular inspections, issuing legal paperwork such as leases and notices of violation, and handling other administrative duties. However, these and other services may or may not be standard with all property management companies, so it’s important to ask a lot of questions and read the tiny print before making a decision.
Additional Fees to Consider
When considering the cost of a property management company, keep in mind that they can charge a variety of different rates, including a fixed monthly fee, a percentage of rent collected, and additional costs for specialized services. For instance:
- Leasing and Tenant Placement Fees: This fee is a one-time payment commonly similar to one month’s rent. This fee incorporates the marketing of your property, tenant inspections, and lease negotiations.
- Maintenance Fees: Maintenance fees can pay for anything from repairing a dripping faucet to installing a new roof. You should ask 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: When tenants refuse to submit their rent on time, property management companies may impose late payment fines. Each company has its own policy regarding what percentage of the rent constitutes a late fee.
- Advertising Fees: This fee covers photography for listing, advertising space on the internet, and print materials. Advertising fees are sometimes charged on top of other costs, so ask about that before signing anything.
Other owners may feel concerned about the prospect of hiring someone to manage your rental property. If you place a high value on your time, hiring a professional manager may be a good decision. Employing an experienced manager can be a financially sound decision in the long run because of the many advantages it can bring. A property management company can help you preserve your investment and make a hassle-free rental experience. This holds true regardless of the number of properties you own.
Get in touch with Real Property Management Vision if you’re in or around Eagle Rock and want more information on the many ways in which professional management may help you. You may be able to transform your rental property into a profitable investment with the help of our experienced team, comprehensive services, and time-tested techniques. Contact us online or call us today! 818-233-8789
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