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 prudent to assess the services provided by each company before basing your decision solely 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, these services may not be part of the fees charged by every property management company. Therefore, it’s important to read the fine print and ask questions before hiring a property management company.
Exploring Additional Charges
When evaluating the expenses involved in hiring a property management company, it’s important to remember that they may apply either a fixed charge or a fee determined by a percentage of the rent collected. Moreover, they may charge extra fees for specific services. For example:
- Leasing and Tenant Placement Fees: This fee is typically a one-time charge equivalent to one month’s rent. This fee includes property marketing, screening tenants, and negotiating leases.
- Maintenance Fees: Maintenance fees can include various tasks, such as fixing a leaky faucet or 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 apply late payment fees if tenants do not pay their rent on time. Late fees are commonly a percentage of the rent and differ depending on the company.
- Advertising Fees: This fee includes photography for listings, internet advertising space, and printed materials. Occasionally, advertising fees are included in addition to other charges, so it’s important to ask about this before making any commitments.
We realize that some rental property owners may have reservations 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 benefits are relevant whether you own one property or multiple properties.
If you’re interested in discovering the benefits of professional property management in Hot Springs Village, contact Real Property Management Hometown today! You can reach us at 501-701-4702 or 501-303-6870 or contact us online.