Real estate investors worldwide know that they can save tons of time by hiring a quality property manager, and they know that time is money! While you may think that property management companies charge too many fees, we’re here to show you why they’re necessary. Here’s a breakdown of different property management fees.
Percentage of Rent or Fixed Fees
The primary source of income for property management companies comes in the form of a percentage of monthly rent or a fixed fee. If your management company wants a percentage of the rent, it’s likely between 8 and 12 percent. That means you get to keep 90 percent of the money your property makes for doing no work!
Property managers may instead opt for a fixed fee, which is based on the type of property, its square footage, and the services the company provides. These fees will vary based on the market, but a single-family home will typically cost around $100 a month with a fixed cost.
Vacant Property Costs
Managing and maintaining vacant properties are tasks that can feel like a massive time-suck. Property managers take them off your hands. Managers visit the vacant properties once a week to ensure there are no problems with utilities, leaks, or damage.
Property management companies also take care of finding new tenants. Trusting a company to do this instead of listing the property online is a much safer option since property managers have a network of trusted tenants who will pay their rent on time and keep buildings in good condition.
Late Payment Service Charges
Tracking down tenants to pay their rent is tedious and can involve uncomfortable conversations. Your property manager will typically charge a late fee when this happens, and keep between 25 and 50 percent of the charge as compensation for doing the work of collecting unpaid rent. If you’re looking for help, we can assist with property leasing and management!
Now that you know many of the different property management fees, consider investing in a property management company and making your life easier!
