There are two possibilities available for you as a landlord for managing your rental property. You can handle it yourself or hire a company to manage it for you.
There are many rewards to hiring a property management company, like maximizing your rental income, lessening vacancy periods, and handling maintenance and repairs. However, how much does it cost to hire a property manager? This article will analyze the rates and fees charged by property management companies.
Property Management Fees
The most important fact to remember regarding management fees is that they differ greatly from one location and company to another. Nevertheless, property management companies normally charge a national average of 5-12% of the monthly rent collected.
This is a great place to begin, but it fails to present the whole story. This is why it is important to evaluate a company’s charges with their services – that is to say, what you really get for your money, not just how much it costs.
Most property managers utilize the fees they charge to cover the expenditures of marketing and advertising for new tenants, collecting rent payments, conducting tenant screening and investigations, answering tenant requests and worries, coordinating maintenance requests and repairs, working on regular inspections, granting legal paperwork such as leases and notices of violation, and performing other administrative duties. But these and other services may or may not be included in all property management companies, so it’s critical to review the terms and conditions and ask lots of questions before choosing one.
Additional Fees to Consider
When considering the cost of a property management company, you need to take into account that they can ask for a fixed fee or a fee depending on a percentage of rents collected – plus other expenses for specific amenities. For illustration:
- Leasing and Tenant Placement Fees: This fee is a one-time payment often equivalent to one month’s rent. This fee incorporates the marketing of your property, tenant screenings, and lease settlements.
- Maintenance Fees: Repairing a dripping faucet or replacing the roof are just two examples of what can be included in upkeep costs. You need to ask about management companies, how they assess maintenance fees, and if there is a cap on the amount they can ask for per repair.
- Tenant Late Payment Fees: Property management companies have the power to charge late fees to tenants whose rent is paid late. Late fines are normally a certain percentage of the rent but might vary from company to company.
- Advertising Fees: This fee contains photography for listing, digital ad space, and physical ads. Find out whether there will be any additional advertising fees before signing any contract.
Some property owners may be hesitant to hire someone to manage their rental property. Hiring a professional manager can be a great move, specifically when you place a high value on your time. The upsides of partnering with an experienced manager can significantly outweigh the expense, making it a financially sound decision in many years. A property management company can help you preserve your investment and make a hassle-free rental experience. This is true irrespective of the number of homes you own.
Real Property Management Capital Region is here to assist those in Clifton Park and the surrounding areas interested in learning more about the many benefits of professional property management. Our experienced staff, comprehensive services, and dependable methods may help you to convert your rental property into a profitable investment. Contact us online or call us immediately! 518-290-1448
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