One of the pivotal decisions for landlords is whether to self-manage a rental property or contract a property management company. Selecting a property management firm offers several benefits, such as increasing rental income, reducing vacancy periods, and overseeing property maintenance and repairs. This article will explore the standard property management rates and the different fees that property management companies may charge.
Understanding Property Management Fees
It’s crucial to understand that property management fees can vary significantly based on location and the company. The national average range for property management services generally spans from 5-12% of the monthly rent collected. Nevertheless, it’s prudent to assess the services provided by each company before basing your decision solely on cost. By doing so, you can find the best value for your investment.
Many property managers utilize the fees they charge to encompass a range of services including marketing and advertising for new tenants, rent collection, tenant screening and background checks, addressing tenant inquiries and requests, managing maintenance and repairs, performing regular inspections, preparing legal documents such as leases and violation notices, and offering administrative support.
However, these services may not be included in the fees charged by every property management company. Therefore, it’s important to carefully read the fine print and inquire before contracting a property management company.
Exploring Additional Charges
When examining the costs associated with hiring a property management company, it’s essential to remember that they may impose either a flat charge or a fee determined by a percentage of the rent collected. Additionally, they may apply extra fees for specific services. For example:
- Leasing and Tenant Placement Fees: This fee is typically a one-time charge equivalent to one month’s rent. This charge involves marketing your property, screening tenants, and negotiating leases.
- Maintenance Fees: Maintenance fees can encompass various tasks, from fixing a leaky faucet to replacing a roof. It’s advisable to inquire with your property management company about their method for evaluating maintenance fees and if there’s a limit on the charge per repair.
- Tenant Late Payment Fees: Property management companies may charge late fees if tenants do not pay their rent on time. Late fees are commonly a percentage of the rent and differ depending on the company.
- Advertising Fees: This fee covers photography for listings, internet advertising space, and print materials. On occasion, advertising fees are applied in addition to other costs, so it’s wise to ask about this before making any agreements.
We recognize that some rental property owners may be hesitant to hire someone to manage their property. However, professional management often delivers several advantages, particularly if your time is valuable. By employing a property management company, you can save time and money, preserve the long-term value of your property, and have a hassle-free rental experience. These benefits are relevant whether you own one property or multiple properties.
If you’re interested in discovering the benefits of professional property management in Fairhaven, contact Real Property Management Success today! You can reach us at 774-840-5140 or contact us online.
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