As a landlord, you have two approaches to managing your rental property. You can either opt to do it yourself or hire a company to help you out.
Hiring a property management company can be really helpful. They can assist you in maximizing your rental income, reducing your vacancy rate, and taking responsibility for maintenance and repairs. However, how much does it cost to hire a property manager? In this piece, we will explore the rates and fees charged by property management companies.
Property Management Fees
The first thing you need to know about management fees is that they differ greatly depending on where you are and the company you’re dealing with. However, property management companies frequently charge a national average of 5-12% of the monthly rent collected.
That’s a great start. However, there’s more to the picture. That is the reason it’s important to compare a company’s fees with their services – in other words, what you are actually getting for your money, not just how much it costs.
For numerous property managers, the money they charge is used to pay for marketing and advertising for new tenants, collecting rent payments, carefully selecting and screening tenants, addressing tenant requests and questions, overseeing maintenance requests and repairs, conducting frequent inspections, delivering legal paperwork such as leases and notices of violation, and executing other administrative responsibilities. It’s always a good idea to carefully read the fine print and ask a lot of questions before choosing one because these and other services may or may not be included by all property management companies.
Additional Fees to Consider
When figuring out the cost of a property management company, it’s necessary to keep in mind that they may charge either a flat fee or a fee based on a percentage of rents collected – plus extra expenses for certain services. For example:
- Leasing and Tenant Placement Fees: It is commonly one month’s rent, and this is a one-time payment. Marketing of your property, tenant selections, and lease negotiations are all included in this fee.
- Maintenance Fees: Such as fixing a dripping faucet or replacing a new roof is included in the maintenance fee. You need to inquire about your management company, how they assess maintenance fees, and whether there is a cap on the amount they will charge for every fix.
- Tenant Late Payment Fees: Property management companies may charge late payment fines when tenants forget to pay their rent on time. Late fees are commonly a percentage of the rent and differ by company.
- Advertising Fees: The advertising charge includes the cost of using photos for your listings, as well as online and print ad space. Before making a final decision, it’s always a good idea to ask about any additional advertising fees that might come up.
The impression of paying someone to manage your rental property can make some owners uncomfortable. Hiring a professional manager can prove to be a great decision, especially if you place a high value on your time. Having an experienced manager can bring so many benefits that it’s totally worth it in the long run, making it a financially sound decision. A property management company is here to help you protect the value of your property and ensure you have a hassle-free rental experience. This is true whether you own one property or dozens.
Get in touch with Real Property Management Greenway if you want to learn more about the advantages of hiring a professional property manager in Dunwoody or the nearby area. With the support of our experienced team, extensive services, and established strategies, your rental property might become a profitable investment. Contact us online or call us right now! 770-771-6102
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