Landlords grapple with a major choice: self-manage a rental property or employ 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 investigate the standard property management rates and the various types of fees that property management companies might levy.
Understanding Property Management Fees
It’s important to realize that property management fees can fluctuate significantly depending on the 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 important to carefully read the fine print and inquire before contracting a property management company.
Exploring Additional Charges
When considering the costs associated with hiring a property management company, it’s essential to remember that they may apply either a flat fee or a fee based on a percentage of the rent collected. Additionally, they may impose additional fees for particular services. For example:
- Leasing and Tenant Placement Fees: This charge is typically a one-time fee equivalent 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 if tenants fail to pay their rent on time. Late fees are commonly a percentage of the rent and differ depending on the company.
- Advertising Fees: This charge includes photography for listings, online advertising space, and print materials. Advertising fees are occasionally charged along with other expenses, so it’s crucial to ask about this before finalizing any contracts.
We understand that some rental property owners may be reluctant to hire 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 benefits are applicable whether you own one property or multiple properties.
If you’re curious about how professional property management in Nashua can help you, reach out to Real Property Management Absolute today! You can reach us at 603-242-2727 or contact us online.
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