As a landlord, you have two possibilities for managing your rental property. You have the option to either tackle it yourself or hire a company to take care of it for you.
There are so many great reasons to consider hiring a property management company. They can help you maximize your rental income, reduce the time your property sits vacant, and take care of all those pesky maintenance and repair tasks. But how much does it cost to hire a property manager? In this post, we will review the rates and fees charged by property management companies.
Property Management Fees
The initial thing to understand about management fees is that they vary extensively depending on where you are and the company you’re looking at. However, property management companies often charge a national average of 5-12% of the monthly rent collected.
That’s a great point to begin with. However, there’s more to the story than what has been mentioned. That’s because it’s vital to consider a company’s fees in relation to the services they provide. In other words, it’s essential to know what you’re actually getting for your money rather than just focusing on how much it costs.
Many property managers charge fees to cover important services like marketing and advertising for new tenants, collecting rent payments, tenant screening and verification of identity, tackling tenant requests and inquiries, performing maintenance requests and repairs, running routine inspections, creating legal paperwork such as leases and notices of violation, and providing other administrative duties. However, it’s important to note that not all property management companies include these other services. Therefore, it’s crucial to carefully review the details and ask plenty of questions before making a decision to hire one.
Additional Fees to Consider
When thinking about the cost of a property management company, you have to keep in mind that they can ask for either a flat fee or a fee calculated as a percentage of rent collected. They may also have extra charges for certain services. Here’s an example:
- Leasing and Tenant Placement Fees: This charge is a once-only fee that is typically comparable to one month’s rent. This fee encompasses the marketing of your property, tenant screenings, and lease negotiations.
- Maintenance Fees: Maintenance fees are there to take care of any necessary repairs or replacements, whether it’s fixing a leaky faucet or replacing a roof. Reach out to your management company and ask how they assess maintenance fees. It would also be helpful to inquire if there is a cap on the amount they charge for each repair.
- Tenant Late Payment Fees: Property management companies kindly request tenants to pay their rent on time. In case of any delay, a late payment fee may be applied. Late fees are generally a percentage of the rent and vary by company.
- Advertising Fees: This fee includes photography for listing, advertising space on the internet, and print advertisements. It’s always a good idea to inquire about any potential advertising fees before you go ahead and sign any contracts.
Some owners might feel a bit uneasy about the idea of paying a person to manage their rental property. Hiring a professional manager can be a great decision, particularly if you place a high value on your time. Having an experienced manager can be really beneficial! In fact, their expertise can outweigh the cost and make 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 absolutely true whether you own just one property or even multiple properties.
If you’re interested in discovering more about the advantages of professional property management in Chesapeake or the nearby area, Real Property Management Hampton Roads is here to help. Our skilled staff is here to assist you with a wide range of services that can help transform your rental property into a profitable investment. With our tried-and-true methods, we are confident in our ability to help you achieve your goals. Contact us online or call us today! 757-395-4274
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