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 delve into the standard property management rates and the diverse fees that property management companies could assess.
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 usually ranges 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. This enables you to find the best value for your investment.
Many property managers utilize the fees they charge to cover various 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 other administrative services.
However, these services may not be part of the fees charged by every property management company. Therefore, it’s crucial to read the fine print and ask questions before hiring a property management company.
Exploring Additional Charges
When assessing the expenses linked to hiring a property management company, it’s important to remember that they may apply either a fixed charge 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 includes property marketing, screening tenants, and negotiating leases.
- Maintenance Fees: These fees can cover a wide range 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 charge late fees if tenants do not pay their rent on time. Late fees are typically calculated as a percentage of the rent and vary from one company to another.
- Advertising Fees: This fee includes photography for listings, internet advertising space, and printed 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 acknowledge that some rental property owners may have concerns about hiring someone to manage their property. Nonetheless, professional management often offers numerous benefits, especially if your time is precious. By enlisting a property management company, you can save both time and money, safeguard the long-term value of your property, and experience a stress-free rental process. 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 Lexington, contact Real Property Management Midlands today! You can reach us at 803-403-8838 or contact us online.
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