Property Management Costs
Hiring a professional property manager comes with some general fees. There’s a monthly management fee that covers the ongoing care and protection of your property and your tenant. That fee is usually a percentage of what you earn in rent. Most companies also have a leasing fee, which covers the cost of marketing the property, showing the property, screening the tenants and negotiating the lease. Leasing fees are typically a percentage of the first month’s rent.
Property Management Services
Maintenance is one of the most important services you get for your property management fee. All companies handle maintenance in different ways. Some companies keep an in-house maintenance team, and they simply bill you for the work that’s done. Other companies use outside contractors. Some property management companies have a reserve they use to pay for those costs. Others bill you directly or deduct the charges from rent.
The biggest benefit for you as the property owner is that your manager will get the calls from tenants instead of you. Your manager will make sure the repair request is legitimate and that the tenants are calling for a good reason. You won’t have to worry about those 2:00 a.m. calls that no one wants to answer. You and your property manager can talk about the parameters you’re comfortable with so the manager knows what repairs to take care of immediately and which ones will require your approval and input.
A property management company also handles the marketing and makes sure your property gets the maximum exposure. This ensures you don’t have a long vacancy period and you also know you’ll get a great tenant.