Landlords are confronted with a significant choice: self-manage a rental property or hire a property management company. Opting for a property management firm has several benefits, such as increasing rental income, minimizing vacancy periods, and managing property maintenance 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 varies 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. By doing so, you can find 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 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 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. Additionally, they may impose additional fees for particular 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 include various tasks, such as fixing a leaky faucet or 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 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. Advertising fees are sometimes added to other expenses, so it’s essential to inquire about them before signing anything.
We realize that some rental property owners may have reservations about hiring someone to manage their property. However, professional management frequently offers several advantages, especially 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 interested in learning how professional property management in Brookline can assist you, reach out to Real Property Management Boston today! You can reach us at 617-522-0099 or contact us online.
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