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 explore the standard property management rates and the various fees property management companies may charge.
Understanding Property Management Fees
It’s essential to recognize that property management fees can vary greatly 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. However, it’s wise to consider the services provided by each company before making a decision solely based on cost. This will enable you to determine the best value for your money.
Numerous property managers employ the fees they charge to encompass numerous 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 like leases and violation notices, and providing administrative services.
However, not all property management companies include these services in the fees they charge. 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 vital to bear in mind that they may impose either a fixed fee or a fee based on a percentage of the rent collected. Moreover, they may charge extra fees for specific services. For example:
- Leasing and Tenant Placement Fees: This charge is typically a one-time fee equivalent to one month’s rent. This fee comprises property marketing, tenant screening, and lease negotiation.
- Maintenance Fees: These fees can encompass a range of tasks from repairing a leaky faucet to replacing a roof. It’s recommended that you inquire with your property management company about how they determine maintenance fees and whether there’s a maximum amount 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 covers photography for listings, internet 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 recognize that some rental property owners may be hesitant 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, 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 Idaho Falls can help you, reach out to Real Property Management Southeast Idaho today! You can reach us at 208-522-2400 or contact us online.
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