Landlords must make a significant decision: self-manage a rental property or engage 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 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. 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 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 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 encompass a range of tasks from repairing a leaky faucet to replacing a roof. It’s recommended that you inquire with your property management company about how they determine maintenance fees and whether there’s a maximum amount 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 includes photography for listings, internet advertising space, and printed materials. Sometimes, advertising fees are added on top of other expenses, so be sure to inquire about this before committing to anything.
We recognize that some rental property owners may be hesitant to hire someone to manage their property. However, professional management frequently offers several advantages, especially if your time is valuable. By enlisting a property management company, you can save both time and money, safeguard the long-term value of your property, and experience a stress-free rental process. These benefits are applicable regardless of whether you own one property or multiple properties.
If you’re curious about how professional property management in North Port can benefit you, reach out to Real Property Management Sarasota & Manatee today! You can reach us at 941-225-8185 or contact us online.
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