You have two choices as a landlord when it comes to managing your rental property. You can carry out it personally or hire a company to take care of it.
Hiring a property management company has several advantages, such as maximizing your rental income, reducing vacancy periods, and handling 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 examined in this article.
Property Management Fees
The first thing to know about management fees is that they vary widely from place to place and company to company. However, property management companies generally charge a national average of 5-12% of the monthly rent collected.
Though it just provides a portion of the story, that is a great place to start. Due to that, it’s critical to evaluate a company based not only on how much it costs but also on how much it truly offers for its fees and services.
The costs of marketing and advertising for new tenants, collecting rent payments, conducting background checks on potential tenants, answering tenant requests and inquiries, performing maintenance requests and repairs, organizing regular inspections, preparing legal paperwork like leases and notices of violation, and providing other administrative services are all covered by the fees that property managers charge. However, not all property management companies offer these and other services, so it’s important to read the tiny print and ask lots of questions before choosing one.
Additional Fees to Consider
When looking into the cost of a property management company, it’s also critical to keep in mind that they may charge either a flat fee or a fee depending on a percentage of rent collected – plus additional fees for certain services. For illustration:
- Leasing and Tenant Placement Fees: This fee is a one-time cost that is usually equivalent to one month’s rent. This fee covers the marketing of your property, tenant screenings, and lease discussions.
- Maintenance Fees: These costs might be used for everything from roof replacement to mending a broken faucet. 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 per repair.
- Tenant Late Payment Fees: Property management companies have the right to impose late payment costs when tenants neglect to pay their rent on schedule. Each company has a different late fee, which is typically a percentage of the rent.
- Advertising Fees: Print material, online advertising space, and photography for listing are all included in this charge. Prior to signing anything, find out if there are any advertising fees are included.
Some owners may find it unsettling to consider hiring a third party to manage their rental property. Hiring a professional manager can be a smart move, especially if you place a high value on your time. In the long term, an experienced manager can be a financially sound choice because the advantages can often outweigh the expenses. A hassle-free rental experience and preservation of your property’s worth are provided by a property management company. Whether you own a single home or several, this is true.
Real Property Management Prosperity is available to discuss the advantages of hiring a professional property manager in Levittown or the nearby area. Our experienced team, wide range of services, and tried-and-true techniques might assist you in turning your rental property into a successful investment. Contact us online or call us right now! 267-433-4200
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