You have two choices for managing your rental property as a landlord. There are two options: do it yourself or hire a company to do it for you.
By hiring a property management company, you can maximize your rental income, keep your vacancies to a minimum, and have maintenance and repairs taken care of. But how much does it cost to hire a property manager? The rates and fees charged by property management companies will be talked about in this piece.
Property Management Fees
To begin, you must know that management fees are quite distinct from one place and business to another. However, property management companies usually charge a national average of 5-12% of the monthly rent collected.
That is a good beginning, but it doesn’t tell the whole story. That’s the reason you should compare a company’s fees with their amenities – in other words, what you are actually getting for your money, not just how much it costs.
The fees that property managers charge cover things like marketing and advertising for new tenants, collecting rent payments, screening and background checks for tenants, responding to tenant requests and inquiries, taking care of maintenance requests and repairs, accomplishing routine inspections, delivering legal paperwork such as leases and notices of violation, and providing other administrative responsibilities. However, not all property management companies offer these and other services, so it’s important to study the fine print and ask a lot of questions before picking one.
Additional Fees to Consider
When determining the cost of a property management company, don’t forget that they may demand either a flat fee or a fee determined by a percentage of rent collected – along with additional costs for specific services. Like this:
- Leasing and Tenant Placement Fees: This fee is a one-time payment that is usually similar to one month’s rent. This charge incorporates the marketing of your property, tenant selections, and lease arrangements.
- Maintenance Fees: These can be used to fix anything from a tap that leaks to a roof that needs to be replaced. You should find out how the management company assesses maintenance fees and if there is a cap on the amount they will charge for each fix.
- Tenant Late Payment Fees: Property management companies may charge late payment fees when tenants fail to pay their rent on time. Late fees are usually a percentage of the rent and vary by company.
- Advertising Fees: The amount charged pays for photos for listing, online space for advertisement, and printed materials. Some fees come with advertising fees on top of them, so make sure you know about that before you sign anything.
Many owners are opposed to the idea of hiring someone to manage their rental property. It can be a good idea to hire a professional manager, mainly if you place a high value on your time. Having an experienced manager can bring a lot more money than it costs, so it’s usually a great idea to do it. Making it a financially sound choice in the long run. A property management company will keep your property’s value high and create a hassle-free rental experience. This is true regardless of whether you’re owning one house or dozens.
If you want to discover more about the perks of working with professional property management in Royal Oak or the surrounding area, Real Property Management Silverstone is here to give help. Our experienced staff, variety of services, and proven strategies may help you turn your rental property into an income generator. Contact us online or call us today! 586-992-6419
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