When it comes to managing your rental property, landlords have two options to choose from. You can choose either do it yourself or hire a company to oversee it on your behalf.
There are multiple advantages to hiring a property management company, such as maximizing your rental income, minimizing periods of vacancy, and managing maintenance and repairs. However, how much does it cost to hire a property manager? This article will examine the rates and fees charged by property management companies.
Property Management Fees
One important fact to understand about management fees is that they can differ significantly depending on location and company. However, it is common for property management companies to charge a national average of 5-12% of the monthly rent collected.
While it’s a solid starting point, it merely covers a portion of the narrative. That is the reason it is vital to contrast a company’s fees with what they provide – in other words, the actual benefits you receive for your money rather than just how much it costs.
The charges imposed by various property managers are used to cover the expenses of marketing and advertising for new tenants, collecting rent payments, assessing tenants and verifying their identity, reacting to tenant requests and questions, dealing with maintenance requests and concerns, administering regular inspections, providing legal paperwork such as leases and notices of violation, and offering other administrative assistance. However, these and other services may or may not be delivered by all property management companies, so it is essential to carefully review the details and ask multiple inquiries before making a decision.
Additional Fees to Consider
When establishing the cost of a property management company, it’s important to consider that they may require a one-time charge or a fee depending on the amount of rent collected – in addition to other costs for specific services. As an example:
- Leasing and Tenant Placement Fees: Typically, the fee is a one-time payment that is equivalent to one month’s rent. The fee covers the marketing of your property, evaluation of potential tenants, and discussions regarding the lease terms.
- Maintenance Fees: These charges encompass a wide range of services, such as repairing a spilling faucet or renovating a roof. You should ask your management company about how they assess maintenance fees and whether there is a cap on the amount they will charge for each repair.
- Tenant Late Payment Fees: Property management companies have the authority to charge late payment fees if tenants fail to settle their rent on schedule. Overdue penalties are typically calculated as a percentage of the rent and can change based on the company.
- Advertising Fees: This covers the cost of photography for listing, promoting the space online, and printing materials. Advertising fees are sometimes imposed in addition to other expenses, so be sure to ask about this before signing anything.
Some owners are anxious about the concept of paying someone to manage their rental property. Hiring a professional manager can be a good investment, especially if you place a high value on your time. The perks of working with an experienced manager can drastically surpass the expenses, making it a financially sound choice eventually. A property management company will maintain the value of your property while also guaranteeing a hassle-free rental experience. This is true whether you have one or several properties.
Real Property Management Pacific is available to assist you in learning more about the positive effects of professional property management in Emeryville and its surrounding areas. Our experienced personnel, extensive services, and dependable methods have the potential to help you transform your rental property into a source of income. Contact us online or call us now! 510-900-4544
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