As a landlord, you have two strategies for managing your rental property. You can either opt to do it yourself or hire a company to perform it for you.
Hiring a property management company may help you in many ways, such as maximizing your rental income, decreasing your vacancy rate, and taking responsibility for maintenance and repairs. But how much does it cost to hire a property manager? In this piece, we will look into the rates and fees charged by property management companies.
Property Management Fees
The first thing to understand about management fees is that they differ greatly depending on location and management firm. However, property management companies typically charge a national average of 5-12% of the monthly rent collected.
It’s certainly a good starting point, but it only gives part of the picture. That’s because it’s crucial to weigh the value you’re receiving against how much it costs when deciding which company to work with.
For most property managers, the money they ask is used to pay for marketing and advertising for new tenants, collecting rent payments, tenant selections and background inspections, answering tenant requests and questions, managing maintenance requests and repairs, performing frequent inspections, issuing legal paperwork such as leases and notices of violation, and delivering other administrative tasks. But these and other services may or may not be included for all property management companies, so it’s essential to read the fine print and ask many questions before hiring one.
Additional Fees to Consider
When calculating the cost of a property management company, don’t forget that they may charge either a fixed rate, a percentage of rents collected, or both, in addition to costs for certain services. Case in point:
- Leasing and Tenant Placement Fees: It is usually one month’s rent, and this is a one-time charge. Marketing of your property, tenant screenings, and lease negotiations are all included in this price.
- Maintenance Fees: Such as mending a dripping faucet or installing a new roof is included in the maintenance fee. You should ask your management company how they assess maintenance fees and whether there is a cap on the amount they will charge every fix.
- Tenant Late Payment Fees: Property management companies may assess late payment fines when tenants forget to settle their rent on time. The company may charge a flat rate fee or a percentage of the rent.
- Advertising Fees: Photos used for listings, as well as online and print ad space, are all included in the advertising charge. Before signing anything, you should inquire about any additional advertising fees that may apply.
The idea of paying someone to manage your rental property can make some owners uneasy. Hiring a professional manager can prove to be a wise investment, particularly if you place a high value on your time. The benefits of having an experienced manager can significantly outweigh the cost, making it a financially sound decision in the long run. A property management company will protect the value of your property and create a hassle-free rental experience. This is true whether you own one property or dozens.
Please contact Real Property Management Pocatello if you’re interested in learning more about the rewards of professional property management in Bannock County or the surrounding area. With the support of our qualified team, broad services, and reliable strategies, your rental property might become a lucrative investment. Contact us online or call us today! 208-234-1000
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