Have you recently thought about hiring a property management company for your properties? Are you wondering, “What do property management companies charge?”
Depending on what you want a property management company to do, the amount you’ll pay will be different. Therefore, depending on the needs of your property, the property management charges will vary as well.
We have compiled a few helpful hints to help you understand the cost of hiring a property management company. Keep reading to learn about property management tips.
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Property Management Fee
Property management charges will vary depending on the size and location of the property, the number of units, and the type of property. Management companies typically charge a percentage of the monthly rent as their management fee. The average management fee is 8-10% of the monthly rent.
If the monthly rent is $1,000, the management fee would be $80-$100. Some property management companies also charge a one-time set-up fee to get the property ready for rent.
Vacancy Fee
This fee may be a percentage of the rent that was earned while the unit was occupied or a flat fee. The purpose of the vacancy fee is to reimburse the property management company for the time and resources that are expended in finding a new tenant for the unit. Many property management companies will waive the vacancy fee if the client provides a replacement tenant.
Lease Renewal Fee
This fee is used to cover the costs associated with renewing the lease, such as preparing new lease documents and conducting a credit check on the tenant. The exact amount of this fee may vary from company to company. It is typically a fairly reasonable charge that helps to cover the cost of the property management company’s time and effort in coordinating the lease renewal process.
Marketing Fee
This fee is designed to cover the costs associated with marketing the property, including advertising, signage, and website maintenance. It is usually a percentage of the monthly rent and can range from $100 to $1,000 per month. For properties that are difficult to rent or are in a market with high vacancy rates, the marketing fee can be a significant expense.
Eviction Fee
This fee is typically a percentage of the rent owed, and it is used to cover the costs of the eviction process. The charges will vary depending on the state in which the property is located and the complexity of the eviction. In some cases, the property management company may also charge a late fee, a returned check fee, or a cleaning fee.
What Do Property Management Companies Charge: Is It Worth the Cost?
What do property management companies charge? There are different types of fees that property management companies charge. The type of property, location, number of units, and services provided are just a few of the factors that can affect the price.
Is it worth the cost? That depends on your situation. If you live in another state or country, it may be worth the cost to have someone else handle the day-to-day tasks. Also, property management can take an incredible amount of time out of your already busy day.
If you live nearby and are able to handle most of the tasks yourself, you may save money by managing the property yourself.
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