You have two alternatives for managing your rental property as a landlord. You have the option of undertaking it yourself or hiring a company to do it for you.
There are several perks to hiring a property management company, such as maximizing your rental income, lowering vacancy time, and overseeing maintenance and repairs. But how much does it cost to hire a property manager? This article will discuss the rates and fees charged by property management companies.
Property Management Fees
The first thing to remember about management fees is that they differ significantly from place to place and company to company. However, property management companies mostly collect a national average of 5-12% of the monthly rent collected.
This is a good starting point, but it only conveys part of the plot. Because of this, it’s important to compare a company’s fees with their services – in other words, what you are actually receiving for your money, not just how much it costs.
For most property managers, the charges they collect are utilized to pay for the expenses of marketing and advertising for new tenants, collecting rent payments, performing tenant screening and investigations, answering tenant requests and demands, taking care of maintenance requests and fixes, carrying out frequent inspections, creating legal paperwork like leases and notices of breach, and offering other administrative supports. Yet, these and other services may or may not be featured for all property management companies, so it’s crucial to examine the fine print carefully and ask lots of inquiries before choosing 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. For example:
- Leasing and Tenant Placement Fees: This charge is commonly equal to one month’s rent and is a one-time charge. This fee encompasses the marketing of your property, tenant evaluation, and lease agreements.
- Maintenance Fees: Maintenance expenses could encompass everything from repairing a dripping faucet to rebuilding the roof. You ought to check with your management company about how they assess maintenance fees and whether there is a cap on the amount they will charge every fix.
- Tenant Late Payment Fees: When tenants fail to shell out their rent on schedule, property management companies may assess penalties for late payments. Overdue penalties differ by company and are typically a percentage of the rent.
- Advertising Fees: This fee contains photography for listing, web-based marketing space, and printed materials. Ask about advertising fees in addition to any other costs prior to signing any documents.
Some property owners are apprehensive about the prospect of hiring someone to manage their rental property. If you place a high value on your time, hiring a professional manager can prove to be an excellent decision. In the long run, the benefits of working with an experienced manager can substantially outweigh the expense, making it a financially sound choice. A property management company will safeguard the value of your property and make a hassle-free rental experience. This is true regardless of the number of properties you own.
If you are interested in learning more about the advantages of professional property management in Cranston or the adjacent area, Real Property Management Providence is available to assist you. Our skilled employees, extensive services, and reliable strategies may help you convert your rental property into an income-producing asset. Contact us online or call us today! 401-272-3300
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