There are two ways for you as a landlord to manage your rental property. It is up to you whether you do it yourself or hire a company to deal with it for you.
There are lots of excellent reasons to consider hiring a property management company. They can assist you in maximizing your rental income, reducing the time your property sits vacant, and managing all those maintenance and repair responsibilities. However, how much does it cost to hire a property manager? In the following section, we will discuss the rates and fees charged by property management companies.
Property Management Fees
The initial point you should know about management fees is that they vary extensively based on where you are and the company that you’re interested in. However, property management companies often ask for a national average of 5-12% of the monthly rent collected.
That’s a good start. However, there’s more to the story than what has been said. That’s the reason it’s best to evaluate a company’s fees in relation to the services they offer. In other words, it’s important to understand what you’re actually getting for your money rather than just focusing on how much it costs.
Numerous property managers impose charges to cover essential amenities like marketing and advertising for new tenants, collecting rent payments, tenant screening and making sure they are who they say they are, dealing with tenant requests and inquiries, making maintenance requests and repairs, doing routine inspections, issuing legal paperwork such as leases and notices of violation, and conducting other administrative duties. However, it’s important to keep in mind that not all property management companies offer these other services. So, before you decide to hire one, you should carefully look over the details and ask a lot of questions.
Additional Fees to Consider
When thinking about the cost of a property management company, you should know that they can charge either a flat fee or a fee that corresponds to a percentage of rent collected. They may also have extra fees for some services. Here’s an example:
- Leasing and Tenant Placement Fees: This fee is only due once and is about the same as one month’s rent. This payment encompasses the marketing of your property, tenant assessing, and lease settlements.
- Maintenance Fees: These fees cover any fixes or replacements that need to be done, like fixing a faucet that leaks or putting on a new roof. Talk to your management company and ask how they assess maintenance fees. Also, it would be smart to find out if there is a cap on the amount they charge for each repair.
- Tenant Late Payment Fees: Property management companies ask tenants to pay their rent on time. If you are late with your payment, you may have to pay a penalty. Late fees are usually a certain percentage of the rent and can vary depending on the company.
- Advertising Fees: This fee pertains to photography for listing, advertising space on the internet, and paper ads. Before you accept any contract, it’s always a good idea to inquire about any possible advertising fees.
There are people who might be hesitant about paying someone to manage their rental property. Hiring a professional manager can prove to be a great idea, especially if you place a high value on your time. Having an experienced manager can be really advantageous! In fact, their knowledge can outweigh the cost and make it a financially sound choice in the future. The value of your property will be protected by a property management company and create a hassle-free rental experience. This is absolutely true whether you have just one property or even more.
Real Property Management Exclusive is here to help you learn more about the perks of hiring a professional property manager in Peoria or the surrounding region. Our knowledgeable team is here to assist you with an extensive service that can help convert your rental property into a lucrative investment. With our dependable strategies, we are sure we can help you achieve your goals. Contact us online or call us today! 480-716-7899
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