As a landlord, you have two options for managing your rental property: handling it yourself or hiring a company to do it for you.
Maximizing your rental income, reducing vacancy times, and managing maintenance and repairs are just a few advantages of hiring a property management company. 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
First, it’s critical to recognize that management fees vary drastically based on locations and companies. However, property management companies typically charge a national average of 5-12% of the monthly rent collected.
That’s a great place to begin, even if it just tells a portion of the story. Due to this, 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 most property managers, the fees they collect cover the expenses of marketing and advertising for new tenants, collecting rent payments, conducting background checks on potential tenants, addressing tenant requests and issues, managing maintenance requests and repairs, conducting regular inspections, preparing legal paperwork such as leases and notices of violation, and executing other administrative tasks. However, not all property management businesses offer these and other services, so it’s essential to read the instructions carefully and ask many questions before picking one.
Additional Fees to Consider
When looking into the cost of a property management company, it’s also necessary to remember that they may charge either a flat fee or a fee based on a percentage of rents collected – plus additional fees for certain services. To give an example:
- Leasing and Tenant Placement Fees: These one-time fees usually amount to one month’s rent. They cover the marketing of your property, tenant evaluations, and lease agreements.
- Maintenance Fees: These charges can cover a range of repairs, from fixing a leaking faucet to replacing a roof. It’s advisable to ask your management company how they determine maintenance fees and whether there is a limit on the amount they will charge for each repair.
- Tenant Late Payment Fees: Property management companies have the authority to impose penalties when tenants fail to pay their rent on time. The amount varies by company, with late fees typically calculated as a percentage of the rent.
- Advertising Fees: This charge includes the cost of print materials, online and mobile advertising space, and photographs for listings. Be aware that advertising fees may be charged in addition to other costs, so it’s important to clarify this before signing any agreements.
For property owners, the thought of hiring a professional to manage their rental property can be daunting. However, working with an experienced property manager can be a wise decision, especially if you value your time. The advantages of enlisting a professional often outweigh the costs, making it a financially sound choice in the long run. A property management company can help maintain and protect the value of your property while providing a hassle-free rental experience, whether you own a single property or multiple units.
Real Property Management Vancouver may give you additional information about the perks of hiring a professional property manager. We can help you convert your rental property into a profitable investment with our experienced personnel, a wide range of services, and tried-and-true methods. Contact us online to speak with a member of our property management team.
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