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 delve into the standard property management rates and the diverse fees that property management companies could assess.
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 typically falls between 5-12% of the monthly rent collected. Nonetheless, it’s recommended to evaluate the services offered by each company before solely considering cost when making a decision. This enables you to find the best value for your investment.
Many property managers use the fees they charge to cover 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 providing administrative support.
However, these services may not be part of 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 considering the costs associated with hiring a property management company, it’s essential to remember that they may apply either a flat 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: This fee typically amounts to 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 encompass a range of tasks from repairing a leaky faucet to replacing a roof. It’s prudent to ask your property management company how they determine maintenance fees and if there’s a maximum they’ll charge per repair.
- 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 fee includes photography for listings, internet 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. 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, ensure the long-term value of your property, and have a hassle-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 Waltham can assist you, reach out to Real Property Management Commonwealth today! You can reach us at 617-299-2342 or contact us online.
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