Property Management Fee Costs: What You Need to Know

When it comes to managing your rental property, as a landlord, you have two options. It’s something you can do yourself or hire a company to manage it for you. 

Maximizing your rental income, cutting down on vacancy times, and taking care of maintenance and repairs are just a few benefits of hiring a property management company. But how much does it cost to hire a property manager? This article will look at the rates and fees charged by property management companies.

Property Management Fees

First, it’s essential to understand that management fees differ greatly between locations and companies. However, property management companies typically charge a national average of 5-12% of the monthly rent collected.

Even if it only tells part of the tale, that’s a terrific place to start. This is why it’s significant to assess a business not just on how much it costs but also on the value that it actually provides for the fees and services it charges.

For many property managers, the fees they charge are used to cover the cost of marketing and advertising for new tenants, collecting rent payments, tenant screening and background checks, responding to tenant requests and inquiries, handling maintenance requests and repairs, conducting regular inspections, providing legal paperwork such as leases and notices of violation, and providing other administrative services. But these and other services may or may not be included for all property management companies, so it’s essential to read the fine print and ask many questions before hiring one.

Additional Fees to Consider

It’s imperative to consider that the cost of a property management company may impose additional fees for specific services in addition to either a flat fee or a fee based on a percentage of rent collected when evaluating their costs. To give an example:

• Leasing and Tenant Placement Fees: These one-time fees often amount to one month’s rent. This fee comprises the marketing of your property, assessment of tenants, and lease negotiations.
• Maintenance Fees: These expenses might cover anything from replacing a roof to fixing a leaky faucet. Inquire with 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: Property management companies may demand penalty fees when tenants don’t pay their rent on time. Late fees vary by company and are typically calculated as a percentage of the rent.
• Advertising Fees: This charge includes print materials, online and mobile advertising space, and photographs for listing. Before signing anything, ensure you understand that there may be additional fees for advertising.

For some owners, the idea of employing someone to manage their rental property can be unsettling. Hiring a professional manager may turn out to be a prudent investment, mainly if you place a high value on your time. Long-term financial sound can be ensured by hiring an experienced manager, as the advantages can exceed the expenses. Your property’s value will be preserved, and a hassle-free rental experience will be provided by a property management company. Regardless of how many properties you own, this is true.

In Lancaster or the surrounding area, Real Property Management Traditions may provide you with additional information about the advantages of hiring a professional property manager. We can help you turn your rental property into a profitable investment with our skilled personnel, a wide range of services, and tried-and-true techniques. Contact us online or call us today! 661-266-1400