Landlords must make a significant decision: self-manage a rental property or engage a property management company. Selecting a property management firm offers several benefits, such as increasing rental income, reducing vacancy periods, and overseeing property maintenance and repairs. This article will examine the typical property management rates and the various fees property management companies may impose.
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 generally spans from 5-12% of the monthly rent collected. However, it’s prudent to consider the services provided by each company before making a decision solely based on cost. By doing so, you can find the best value for your investment.
Many property managers utilize the fees they charge to encompass a range of services including marketing and advertising for new tenants, rent collection, tenant screening and background checks, addressing tenant inquiries and requests, managing maintenance and repairs, performing regular inspections, preparing legal documents such as leases and violation notices, and offering administrative support.
However, these services may not be included in the fees charged by every property management company. Therefore, it’s crucial to carefully read the fine print and ask questions before engaging a property management company.
Exploring Additional Charges
When assessing the expenses linked to hiring a property management company, it’s important to remember that they may apply either a fixed charge or a fee based on a percentage of the rent collected. Additionally, they may apply additional fees for certain services. For example:
- Leasing and Tenant Placement Fees: This fee is usually a one-time charge, typically equal to one month’s rent. This charge encompasses property marketing, tenant screenings, and lease negotiations.
- Maintenance Fees: These fees can include a variety of tasks, from fixing a leaky faucet to replacing a roof. It’s a good idea to ask your property management company how they calculate maintenance fees and if there’s a limit on the charge for repairs.
- Tenant Late Payment Fees: Property management companies may charge late fees if tenants do not pay their rent on time. Late fees typically constitute a percentage of the rent and differ among companies.
- Advertising Fees: This charge includes 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 recognize that some rental property owners may be hesitant to hire someone to manage their property. However, professional management typically brings 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 regardless of whether you own one property or multiple properties.
If you’re interested in discovering the benefits of professional property management in Mahwah, contact Real Property Management Concierge today! You can reach us at 201-514-1603 or contact us online.
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