You can manage your rental property in one of two ways as a landlord. You can choose either hire a company to do it for you or do it yourself.
Hiring a property management company can help you maximize your rental income, reduce vacancy time, and manage maintenance and repairs. But how much does it cost to hire a property manager? This article will talk about the rates and fees charged by property management companies.
Property Management Fees
First, you should know that management fees are different from one place and company to another. However, property management companies generally charge a national average of 5-12% of the monthly rent collected.
This is a great beginning, but it doesn’t tell the whole story. This is why it’s advisable to evaluate a company’s fees with their services – in other words, what you are actually getting for your money, not just how much it costs.
Property managers often get paid to do things like finding new tenants, collecting rent payments, marketing and advertising for new tenants, answering questions and requests from tenants, taking care of maintenance requests and repairs, doing regular inspections, giving out legal paperwork such as leases and notices of violation, and providing other administrative tasks. On the other hand, not all property management companies offer these and other services, so it’s recommended to review the contract carefully and ask a lot of questions before choosing one.
Additional Fees to Consider
When you look at the cost of a property management company, keep in mind that they may charge an upfront cost or a fee according to a percentage of rent collected – plus extra fees for some services. For example:
- Leasing and Tenant Placement Fees: This is a single charge that is usually equal to one month’s rent. This fee covers the marketing of your property, tenant selection, and lease discussions.
- Maintenance Fees: Maintenance fees can cover everything from fixing a leaky faucet to replacing a 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: If a tenant doesn’t pay their rent on time, the property management companies may charge them a late payment penalty. Payment penalties are different for each company and are generally a percentage of the rent.
- Advertising Fees: This fee includes photos for listing, online ad space, and business cards. On top of other costs, you may have to pay advertising fees. Find out about this before you sign anything.
Some owners don’t like the thought of paying someone to manage their rental property. Hiring a professional manager can prove to be a good idea, especially if you place a high value on your time. In the future, working with an experienced manager can be a good investment because the rewards can be much greater than the cost. Making it a financially sound decision. A property management company will retain the value of your property and create a hassle-free rental experience. This is true whether you own one property or dozens.
The Real Property Management Clarity Team is here for you to learn more about the benefits of employing a professional property manager in Sandusky or the nearby vicinity. Our competent workers, a wide range of services, and time-tested techniques may help you turn your rental property into a successful investment. Contact us online or call us today! 567-200-2320
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