One of the pivotal decisions for landlords is whether to self-manage a rental property or contract a property management company. Choosing a property management firm provides numerous advantages, including boosting rental income, reducing vacancy durations, and managing property upkeep 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 usually ranges from 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 will enable you to determine the best value for your money.
Many property managers utilize the fees they charge to encompass a range of services including marketing and advertising for new tenants, rent collection, tenant screening and background checks, addressing tenant inquiries and requests, managing maintenance and repairs, performing regular inspections, preparing legal documents such as leases and violation notices, and offering administrative support.
However, not all property management companies include these services in the fees they charge. Therefore, it’s essential to carefully review the fine print and ask questions before enlisting the services of 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: This charge is typically a one-time fee equivalent to one month’s rent. This charge encompasses property marketing, tenant screenings, and lease negotiations.
- Maintenance Fees: These fees can include a variety of tasks, from fixing 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 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 acknowledge that some rental property owners may have concerns about hiring someone to manage their property. However, professional management often provides several advantages, particularly if your time is valuable. 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 benefits are relevant whether you own one property or multiple properties.
If you’re curious about how professional property management in Bend can help you, reach out to Real Property Management Ignite today! You can reach us at 541-550-7002 or contact us online.
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