Landlords face a major decision: self-manage a rental property or enlist a property management company. Electing to use a property management firm comes with various advantages, such as boosting rental income, minimizing vacancy periods, and handling property maintenance and repairs. This article will examine the typical property management rates and the various fees property management companies may impose.
Understanding Property Management Fees
It’s important to realize that property management fees can fluctuate 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 prudent 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 use the fees they charge to encompass a variety of 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 offering administrative services.
However, these services may or may not be covered by the fees charged by all property management companies. Therefore, it’s crucial to carefully read the fine print and ask questions before engaging a property management company.
Exploring Additional Charges
When assessing the expenses linked to hiring a property management company, it’s important to remember that they may apply either a fixed charge or a fee based on 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 usually a one-time charge, typically equal to one month’s rent. This charge encompasses property marketing, tenant screenings, and lease negotiations.
- Maintenance Fees: Maintenance fees can encompass various 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 may charge late fees if tenants fail to pay their rent on time. Late fees are typically a percentage of the rent and vary by company.
- Advertising Fees: This charge includes photography for listings, online advertising space, and printed materials. Occasionally, advertising fees are included in addition to other charges, so it’s important to ask about this before making any commitments.
We understand that some rental property owners may be hesitant to hire someone to manage their property. However, professional management typically brings several advantages, especially if your time is valuable. 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 advantages are relevant whether you own one property or multiple properties.
If you’re curious about the benefits of professional property management in Frisco, contact Real Property Management One Source today! You can reach us at 214-721-0727 or contact us online.
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