As a landlord, there are two alternatives for managing your rental property. You can either undertake the task independently or hire a company to handle it for you.
There are numerous advantages to hiring a property management company, such as maximizing your rental income, reducing vacancy duration, and facilitating maintenance and repair tasks. But how much does it cost to hire a property manager? This article aims to examine the rates and fees charged by property management companies.
Property Management Fees
It’s important to note that management fees are extremely different from place to place and company to company. Nevertheless, property management companies commonly charge a national average of 5-12% of the monthly rent collected.
This first point of reference is commendable, but it merely presents a partial narrative. That’s because it’s critical to contrast a company’s fees with its services – in other words, what you are actually receiving for your money, not just how much it costs.
The fees levied by property managers serve the purpose of covering various expenses of marketing and advertising for new tenants, collecting rent payments, tenant screening and verification of identities, addressing tenant requests and inquiries, managing maintenance requests and repairs, conducting routine inspections, facilitating the preparation of legal paperwork such as leases and notices of violation, and delivering other administrative services. However, these and other services may or may not be included for all property management companies, so it’s recommended to review the fine print and ask many questions before choosing one.
Additional Fees to Consider
When assessing the cost of a property management company, it’s also critical to bear in mind that they may impose either a fixed fee or a fee calculated as a percentage of rents collected – in addition to supplementary charges for certain services. As an illustration:
- Leasing and Tenant Placement Fees: This fee is referred to as a singular charge that is commonly equivalent to one month’s rent. The aforementioned fee includes marketing your property, tenant screenings, and lease negotiations.
- Maintenance Fees: Maintenance fees encompass a wide range of expenses, from the repair of minor plumbing issues such as leaky faucets to the substantial undertaking of roof replacement. It is advisable to inquire with the 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 the authority to impose late payment fines in instances where tenants fail to remit their rent in a timely manner. Late fees often constitute a percentage of the rent and exhibit variability across different companies.
- Advertising Fees: This fee involves photography for listing, advertising space on the internet, and print materials. It is advisable to inquire about the potential imposition of advertising fees in addition to other expenses prior to entering into any contractual agreement.
The concept of remunerating an individual to manage your rental property can elicit apprehension among certain owners. Hiring a professional manager might be a prudent financial decision, especially if you place a high value on your time. The advantages of employing an experienced manager might greatly surpass the cost, making it a financially sound decision in the long term. A property management company is responsible for safeguarding the value of your property and facilitating a hassle-free rental experience. This is true regardless of whether an individual owns a single property or multiple properties.
For those seeking further information regarding the advantages of engaging professional property management services in Hurricane or nearby areas, Real Property Management Southern Utah is available to provide comprehensive assistance. Our team of highly skilled professionals, extensive services, and proven strategies have the potential to assist you in optimizing the profitability of your rental property. Contact us online or call us today! 435-673-4242
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