As a landlord, there are two ways to manage your rental property. You have two options: either work on the task independently or hire a company to handle it for you.
Hiring a property management company can help you maximize your rental income, shorten the time that your property is vacant, and make maintenance and repair tasks easier. However, how much does it cost to hire a property manager? This post will look at the rates and fees charged by property management companies.
Property Management Fees
Firstly, you need to know that management fees are extremely different depending on the location and company you prefer. Nevertheless, property management companies typically charge a national average of 5-12% of the monthly rent collected.
That is an excellent place to start, but it only tells part of the story. This is why it’s critical to contrast a company’s fees with its amenities – in other words, what you are actually receiving for your money, not just how much it costs.
The fees charged by property managers serve the purpose of paying various expenses of marketing and advertising for new tenants, collecting rent payments, tenant screening and investigations, addressing tenant requests and problems, dealing with maintenance requests and repairs, conducting frequent inspections, issuing legal paperwork such as leases and notices of violation, and performing other administrative services. However, these and other services may or may not be featured for all property management companies, so it’s recommended to read the fine print and ask lots of questions before hiring one.
Additional Fees to Consider
When assessing the cost of a property management company, it’s best to remember that they may impose either a fixed fee or a fee calculated as a percentage of rents collected – along with supplementary charges for specific services. As an illustration:
- Leasing and Tenant Placement Fees: This is a one-time fee that is commonly equal to one month’s rent. The above-mentioned fee encompasses marketing your property, tenant screenings, and lease negotiations.
- Maintenance Fees: Maintenance fees include a wide range of expenses, from the repair of minor plumbing problems such as dripping faucets to the large undertaking of roof installment. You need to inquire with the management company how they assess maintenance fees and whether there is a cap on the amount they will demand for each repair.
- Tenant Late Payment Fees: Property management companies have the right to apply late payment fines in instances where tenants neglect to send in their rent payments on time. Late payment penalties often constitute a percentage of the rent and can differ based on companies.
- Advertising Fees: This fee involves photography for listing, advertising space on the web, and print materials. It is best to make inquiries on the possibility of additional expenses, like advertising fees, before entering into any contractual agreement.
Some owners may find it unpleasant to think about paying someone to manage their rental property. Hiring a professional manager can be a wise decision, especially if you place a high value on your time. The advantages of engaging with an experienced manager might greatly outweigh the cost, making it a financially sound decision in the long term. A property management company is liable for keeping the value of your property and facilitating a hassle-free rental experience. This is true regardless of whether you have a single property or several properties.
Real Property Management Your Home is here to offer thorough guidance to anyone looking for more information about the benefits of hiring professional management services in Ooltewah or nearby areas. Our wide services, team of qualified personnel, and tried-and-true strategies may be able to help you maximize the rental property’s profitability. Contact us online or call us today! 423-704-9944
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