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What Do Property Management Companies Charge? Understanding the Different Types of Fees

Three individuals reviewing documents together at a table. 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 investigate the standard property management rates and the various types of fees that property management companies might levy. 

Understanding Property Management Fees 

It’s vital to acknowledge that property management fees can vary considerably depending on the location and the company. The national average range for property management services typically falls between 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 this, 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 be included in 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 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 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: These fees can cover a wide range of tasks, from fixing a leaky faucet to replacing a roof. You ought to ask your property management company about their approach to assessing maintenance fees and if there’s a cap on the amount they’ll charge for repairs. 
  • 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. Sometimes, advertising fees are added on top of other expenses, so be sure to inquire about this before committing to anything. 

We understand that some rental property owners may be hesitant to hire 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 apply regardless of whether you own one property or multiple properties. 

If you’re interested in learning how professional property management in Gluckstadt can assist you, reach out to Real Property Management Omega today! You can reach us at 601-607-8202 or contact us online.       

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