Landlords face a major decision: self-manage a rental property or enlist a property management company. Deciding on a property management firm offers several benefits, such as increasing rental income, minimizing vacancy periods, and addressing 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 essential to note that property management fees can vary significantly depending on the location and the company. The national average range for property management services commonly falls between 5-12% of the monthly rent collected. However, it’s wise to consider the services provided by each company before making a decision solely based 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, not all property management companies include these services in the fees they charge. Therefore, it’s important to carefully read the fine print and inquire before contracting a property management company.
Exploring Additional Charges
When evaluating the expenses involved in hiring a property management company, it’s important to remember that they may apply either a fixed 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 fee comprises property marketing, tenant screening, and lease negotiation.
- Maintenance Fees: Maintenance fees can include various tasks, such as fixing a leaky faucet or 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 apply late payment fees if tenants do not pay their rent on time. Late fees are typically calculated as a percentage of the rent and vary from one company to another.
- 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 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 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 advantages are relevant whether you own one property or multiple properties.
If you’re curious about how professional property management in Spring Branch can benefit you, reach out to Real Property Management Affiliates today! You can reach us at 713-429-0411 or contact us online.
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