There are two choices you can take as a landlord for managing your rental property. Whether you want to do it yourself or hire a company to manage it is entirely up to you.
Hiring a property management company can assist you in several ways, such as maximizing your rental income, cutting your vacancy rate, and organizing maintenance and repairs. However, how much does it cost to hire a property manager? The rates and fees charged by property management companies will be deliberated below.
Property Management Fees
First and foremost, management fees differ greatly depending on factors like location and company. On the other hand, property management companies typically charge a national average of 5-12% of the monthly rent collected.
That’s helpful, but it doesn’t paint the full picture. That’s why you shouldn’t base your decision solely on how much it costs; you should also evaluate the value you’re getting from the company’s services.
The funds collected by property managers are used to cover things such as marketing and advertising for new tenants, collecting rent payments, conducting tenant screening and verification processes, addressing tenant requests and concerns, overseeing maintenance requests and repairs, executing regular inspections, distributing legal paperwork such as leases and notices of violation, and performing other administrative duties. However, not all property management companies automatically include these and other services in their package, so it’s vital to ask a lot of questions and study the fine print before making a final selection.
Additional Fees to Consider
When considering the cost of a property management company, bear in mind that they can charge a variety of different rates, such as a fixed fee or a fee of a percentage of rent collected and extra costs for certain services. For example:
- Leasing and Tenant Placement Fees: This charge is a one-time payment, often similar to one month’s rent. This fee comprises the marketing of your property, screening potential tenants, and lease agreements.
- Maintenance Fees: Anything from fixing a leaking faucet to putting on a new roof might be covered by maintenance fees. You should ask your management company how they assess maintenance fees and whether there is a cap on the amount they will charge for each fix.
- Tenant Late Payment Fees: Property management companies may charge tenants late fees if they repeatedly miss rent payments. Late fees are usually a percentage of the rent and vary by company.
- Advertising Fees: Listing photographs, online and print advertising space, and other promotional materials are all included in the advertising charge. Inquire about any additional advertising fees that may be incurred prior to signing any contracts.
Some owners may feel uneasy about the concept of hiring someone to manage their rental property. If you place a high value on your time, hiring a professional manager may be an excellent move. Working with an experienced manager can be a financially sound choice in the future because of the several benefits it can bring. A property management company can help you protect your investment and make a hassle-free rental experience. This is true no matter how many homes you own.
If you are in need of competent property management in the Westley Chapel area, contact Real Property Management Freedom now. With the help of our skilled team, comprehensive services, and reliable techniques, your rental property may be transformed into a profitable investment. Contact us online or call us right away! 813-867-2667
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