Landlords grapple with a major choice: self-manage a rental property or employ a property management company. Opting for a property management firm has several benefits, such as increasing rental income, minimizing vacancy periods, and managing property maintenance and repairs. This article will explore the standard property management rates and the various fees property management companies may charge.
Understanding Property Management Fees
It’s vital to acknowledge that property management fees can vary considerably depending on the location and the company. The national average range for property management services typically varies between 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 this, you can find the best value for your investment.
Many property managers utilize the fees they charge to cover various services such as marketing and advertising for new tenants, rent collection, tenant screening and background checks, addressing tenant inquiries and requests, managing maintenance and repairs, conducting regular inspections, preparing legal documents such as leases and violation notices, and providing other administrative services.
However, these services may not be included in the fees charged by every property management company. Therefore, it’s crucial to read the fine print and ask questions before hiring a property management company.
Exploring Additional Charges
When assessing the expenses linked to hiring a property management company, it’s vital to bear in mind that they may impose either a fixed fee or a fee based on a percentage of the rent collected. Additionally, they may impose additional fees for particular services. For example:
- Leasing and Tenant Placement Fees: Typically, this fee is a one-time charge equal to one month’s rent. This fee comprises property marketing, tenant screening, and lease negotiation.
- Maintenance Fees: These fees can cover a wide range of tasks, from fixing a leaky faucet to replacing a roof. You ought to ask your property management company about their approach to assessing maintenance fees and if there’s a cap on the amount they’ll charge for repairs.
- Tenant Late Payment Fees: Property management companies might impose late payment fees if tenants fail to pay their rent punctually. Late fees are typically a percentage of the rent and vary by company.
- Advertising Fees: This charge includes photography for listings, internet advertising space, and print materials. Advertising fees are occasionally charged along with other expenses, so it’s crucial to ask about this before finalizing any contracts.
We understand that some rental property owners may be hesitant to hire someone to manage their property. Nonetheless, professional management often offers numerous benefits, especially if your time is precious. By utilizing a property management company, you can save time and money, maintain the long-term value of your property, and enjoy a trouble-free rental experience. These benefits are applicable whether you own one property or multiple properties.
If you’re interested in learning how professional property management in Chandler can assist you, reach out to Real Property Management Accurate Solutions today! You can reach us at 903-481-1041 or contact us online.
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