Property Management Fee Costs: What You Need to Know

There are a pair of choices available to you as a landlord for managing your rental property. You can either do it personally or hire a company to supervise it for you. 

Hiring a property management company provides multiple benefits, such as maximizing your rental income, shortening vacancy periods, and dealing with maintenance and repairs. But how much does it cost to hire a property manager? In this article, we will investigate the rates and fees charged by property management companies.

Property Management Fees

You should know from the beginning that management fees differ widely by both location and the particular company. However, property management companies usually charge a national average of 5-12% of the monthly rent collected.

While it is an excellent starting point, it only gives a partial account of the scenario. This is why contrasting the costs and benefits of various service providers is essential. In other words, you need to consider what you are actually getting for your money rather than focusing on how much it costs.

Property managers charge fees to compensate for various expenses. This entails marketing and advertising for new tenants, collecting rent payments, conducting tenant screening and investigations, answering tenant requests and inquiries, tackling maintenance requests and repairs, running routine inspections, providing legal paperwork such as leases and notices of violation, and performing other administrative tasks that may arise. However, not all property management companies will offer these and other services, so it’s important to look closely at the condition and ask many questions before making a final selection.

Additional Fees to Consider

When determining the cost of a property management company, you have to bear in mind that they might charge either a flat fee or a fee according to the percentage of rent collected. Additionally, there may be additional expenses for certain services. Such as:

• Leasing and Tenant Placement Fees: This fee is a one-time payment that typically corresponds to one month’s rent. This fee encompasses the marketing of your property, tenant examination, and lease negotiations.
• Maintenance Fees: These fees can include everything from repairing a leaky tap to putting on a new roof. You need to inquire with your management company 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 permission to demand from tenants late fees if the rent is not paid on time. The percentage of the rent that constitutes the late fee is variable from one company to another.
• Advertising Fees: Advertising fees include things like listing photos, digital and print ad space, and other promotional materials. Be sure to inquire about any potential hidden advertising fees before signing anything.

For some owners, the concept of hiring someone to manage their rental property comes with a lot of apprehension. Hiring a professional manager can be a wise decision, especially if you place a high value on your time. Working with an experienced manager may prove to be a financially sound choice over time despite the initial outlay of money. A property management company assists with the protection of your property’s value and creates a hassle-free rental experience. This is true whether you have one property or many.

Real Property Management Reliance is here to help anyone in Peabody or the neighboring regions learn more about the benefits of hiring experienced property managers. You may be able to turn your rental property into a profitable investment with the help of our experienced team, extensive services, and tried-and-true methods. Contact us online or call us today! 978-998-8114