Landlords are confronted with a significant choice: self-manage a rental property or hire a property management company. Electing to use a property management firm comes with various advantages, such as boosting rental income, minimizing vacancy periods, and handling 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 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 usually ranges 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. This enables you to find the best value for your investment.
Numerous property managers employ the fees they charge to encompass numerous 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 like leases and violation notices, and providing administrative services.
However, these services may not necessarily be covered by the fees charged by all property management companies. 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 evaluating the expenses involved in hiring a property management company, it’s important to remember that they may apply either a fixed charge or a fee determined by a percentage of the rent collected. Moreover, they may charge extra fees for specific services. For example:
- Leasing and Tenant Placement Fees: This fee is usually a one-time charge, typically equal 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 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 apply late payment fees if tenants do not pay their rent on time. Late fees are commonly a percentage of the rent and differ depending on the company.
- 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 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, ensure the long-term value of your property, and have a hassle-free rental experience. These advantages apply regardless of whether you own one property or multiple properties.
If you’re curious about the benefits of professional property management in St. Augustine, contact Real Property Management Home Together today! You can reach us at 904-417-8988 or contact us online.
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