Landlords are confronted with a significant choice: self-manage a rental property or hire a property management company. Electing to use a property management firm comes with various advantages, such as boosting rental income, minimizing vacancy periods, and handling property maintenance and repairs. This article will explore the standard property management rates and the different fees that 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 commonly falls between 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 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 usually a one-time charge, typically equal 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 might impose late payment fees if tenants fail to pay their rent punctually. Late fees are typically a percentage of the rent and vary by company.
- Advertising Fees: This fee covers photography for listings, internet advertising space, and print materials. Advertising fees are sometimes added to other expenses, so it’s essential to inquire about them before signing anything.
We understand 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 advantages apply regardless of whether you own one property or multiple properties.
If you’re curious about the benefits of professional property management in Murrieta, contact Real Property Management Bella today! You can reach us at 951-916-4329 or contact us online.
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