Landlords face a major decision: self-manage a rental property or enlist a property management company. Selecting a property management firm offers several benefits, such as increasing rental income, reducing vacancy periods, and overseeing property maintenance and repairs. This article will investigate the standard property management rates and the various types of fees that property management companies might levy.
Understanding Property Management Fees
It’s essential to note that property management fees can vary significantly 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 wise to consider the services offered by each company before making a decision solely based on cost. By doing so, you can find 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, not all property management companies include these services in the fees they charge. Therefore, it’s important to read the fine print and ask questions before hiring a property management company.
Exploring Additional Charges
When considering the costs associated with hiring a property management company, it’s essential to remember that they may apply either a flat fee or a fee based on a percentage of the rent collected. Additionally, they may apply additional fees for certain services. For example:
- Leasing and Tenant Placement Fees: This fee typically amounts to a one-time charge equal to one month’s rent. This fee involves property marketing, screening potential tenants, and negotiating leases.
- Maintenance Fees: Maintenance fees can encompass various tasks, from fixing a leaky faucet to replacing a roof. It’s advisable to inquire with your property management company about their method for evaluating maintenance fees and if there’s a limit on the charge per repair.
- Tenant Late Payment Fees: Property management companies may charge late fees when tenants fail to 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, online advertising space, and printed materials. Advertising fees are sometimes added to other expenses, so it’s essential to inquire about them before signing anything.
We understand that some rental property owners may be reluctant to hire 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, ensure the long-term value of your property, and enjoy a hassle-free rental experience. These advantages are relevant whether you own one property or multiple properties.
If you’re interested in discovering the benefits of professional property management in Owasso, contact Real Property Management Abound today! You can reach us at 918-984-4433 or contact us online.
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