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 are used to cover the expense 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 typically amount to one month’s rent. This fee comprises the marketing of your property, evaluation of tenants, and lease agreements.
- Maintenance Fees: These expenses could go toward anything from mending a leaking faucet to rebuilding a roof. It would be great if you could 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: When tenants fail to pay their rent on schedule, property management companies have the right to charge penalties. Each company has different late fees, which are usually calculated as a percentage of the rent.
- Advertising Fees: This charge incorporates print materials, online and mobile advertising space, and photographs for listing. Advertising fees are sometimes charged on top of other costs, so ask about that before signing anything.
The thought of hiring someone to manage their rental property might be uncomfortable for some owners. Hiring a professional manager can be an excellent move, mainly if you place a high value on your time. The benefits of having an experienced manager can significantly outweigh the cost, making it a financially sound decision in the long run. A property management company will protect the value of your property and create a hassle-free rental experience. This is true whether you own one property or dozens.
In Vancouver or the nearby area, 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 or call us today! 360-975-4683