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 examine the typical property management rates and the various fees property management companies may impose.
Understanding Property Management Fees
It’s vital to acknowledge that property management fees can vary considerably 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. Nevertheless, it’s prudent to assess the services provided by each company before basing your decision solely on cost. By doing this, you can ascertain the best value for your investment.
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, these services may not be included in the fees charged by every property management company. 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 examining the costs associated with hiring a property management company, it’s essential to remember that they may impose either a flat charge or a fee determined by a percentage of the rent collected. Moreover, they may levy additional fees for specific services. For example:
- Leasing and Tenant Placement Fees: This fee is typically a one-time charge equivalent to one month’s rent. This charge involves marketing your property, screening tenants, and negotiating leases.
- Maintenance Fees: These fees can include a variety of 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 apply late payment fees if tenants do not pay their rent on time. Late fees usually amount to a percentage of the rent and vary among different companies.
- Advertising Fees: This charge includes photography for listings, internet advertising space, and print materials. Sometimes, advertising fees are added on top of other expenses, so be sure to inquire about this before committing to anything.
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 employing a property management company, you can save time and money, ensure the long-term value of your property, and enjoy a hassle-free rental experience. These benefits are applicable regardless of whether you own one property or multiple properties.
If you’re curious about how professional property management in Hereford can benefit you, reach out to Real Property Management of the High Plains today! You can reach us at 806-553-7914 or contact us online.
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