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 recognize that property management fees can vary greatly depending on the location and the company. The national average range for property management services generally spans from 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 ascertain 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 necessarily be covered by the fees charged by all property management companies. Therefore, it’s important to carefully read the fine print and inquire before contracting 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 additional fees for certain 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: Maintenance fees can encompass various tasks, from fixing a leaky faucet to replacing a roof. It’s a good idea to ask your property management company how they calculate maintenance fees and if there’s a limit on the 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. Advertising fees are occasionally charged along with other expenses, so it’s crucial to ask about this before finalizing any contracts.
We realize that some rental property owners may have reservations about hiring someone to manage their property. However, professional management often delivers several advantages, particularly 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 how professional property management in Cedartown can benefit you, reach out to Real Property Management Allies today! You can reach us at 678-680-5065 or contact us online.
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