As a landlord, you have two choices when it comes to managing your rental property. You have the option to either complete it on your own or hire a company to manage it on your behalf.
There are plenty of perks to hiring a property management company, like maximizing your rental income, reducing the duration of vacancies, and controlling maintenance and repairs. But how much does it cost to hire a property manager? The rates and fees charged by property management companies will be examined in this article.
Property Management Fees
One important fact to understand about management fees is that they can differ significantly depending on the location and the specific company. On average, property management companies generally impose a national average of 5-12% of the monthly rent collected.
While it is a great starting point, it only provides a partial account. Because of this, it is crucial to evaluate a company’s charges in relation to its offerings – in other words, the value you receive for your money, rather than just focusing on how much it costs.
The fees charged by property managers are utilized to cover various expenses such as marketing and advertising for new tenants, collecting rent payments, tenant screening and background checks, solving tenant requests and inquiries, overseeing maintenance requests and repairs, executing regular inspections, preparing legal paperwork such as leases and notices of violation, and providing other administrative support. However, it is important to keep in mind that these and other services may or may not be included for all property management companies, so it’s crucial to carefully review the details and inquire about them before making a decision to hire.
Additional Fees to Consider
When weighing the cost of a property management company, it’s also vital to keep in mind that they may impose either a flat fee or a fee determined as a percentage of rents collected – in addition to extra fees for specific services. As an illustration:
- Leasing and Tenant Placement Fees: This charge is a single payment usually equivalent to one month’s rent. This cost includes the marketing of your property, evaluations of potential tenants, and discussion regarding the lease terms.
- Maintenance Fees: Maintenance fees encompass a wide range of costs, including repairs for a dripping faucet or the replacement of 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: Property management companies have the right to apply late payment fees if tenants do not pay their rent promptly. Late fees typically consist of a percentage of the rent and can differ depending on the company.
- Advertising Fees: This fee includes the cost of photography for listing, as well as the fees for online advertising space and print materials. Before signing any documents, it is advisable to inquire about the possibility of additional charges for advertising fees in addition to other expenses.
The concept of compensating an individual to manage your rental property can cause certain owners to feel uneasy. Hiring a professional manager can be a smart decision, especially if you place a high value on your time. Choosing to have an experienced manager can prove to be a financially sound decision in the long term, as the advantages outweigh the expenses. A property management company will safeguard the value of your property and create a hassle-free rental experience. This remains accurate regardless of whether you possess a single property or multiple properties.
If you are thinking about discovering more about the perks of professional property management in Arlington or the nearby vicinity, Real Property Management Meridian is available to assist you. With our well-informed team, extensive services, and proven techniques, we can assist you in turning your rental property into a profitable investment. Contact us online or call us today! 817-678-8787
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