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 delve into the standard property management rates and the diverse fees that property management companies could assess.
Understanding Property Management Fees
It’s crucial to understand that property management fees can vary significantly based on location and the company. The national average range for property management services typically falls between 5-12% of the monthly rent collected. However, it’s prudent to consider the services provided by each company before making a decision solely based on cost. By doing this, you can ascertain 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 important to carefully read the fine print and inquire before contracting 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 fee includes property marketing, screening tenants, and negotiating leases.
- Maintenance Fees: Maintenance fees can include various tasks, such as fixing a leaky faucet or 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 charge late fees if tenants fail to pay their rent on time. Late fees typically constitute a percentage of the rent and differ among companies.
- Advertising Fees: This charge includes photography for listings, online advertising space, and print materials. Occasionally, advertising fees are included in addition to other charges, so it’s important to ask about this before making any commitments.
We acknowledge that some rental property owners may have concerns about hiring someone to manage their property. However, professional management typically brings several advantages, especially 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 Franklin can help you, reach out to Real Property Management Titan today! You can reach us at 615-538-7711 or contact us online.
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