Landlords must make a significant decision: self-manage a rental property or engage 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 various fees property management companies may charge.
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 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.
Many property managers use the fees they charge to encompass a variety of 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 such as leases and violation notices, and offering administrative services.
However, these services may or may not be covered by the fees charged by all property management companies. Therefore, it’s crucial to carefully read the fine print and ask questions before engaging 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 levy additional fees for specific services. For example:
- Leasing and Tenant Placement Fees: Typically, this fee is a one-time charge equal to one month’s rent. This charge encompasses property marketing, tenant screenings, and lease negotiations.
- Maintenance Fees: Maintenance fees can include various tasks, such as fixing a leaky faucet or replacing a roof. You ought to ask your property management company about their approach to assessing maintenance fees and if there’s a cap on the amount they’ll charge for repairs.
- Tenant Late Payment Fees: Property management companies might impose late payment fees if tenants fail to pay their rent punctually. Late fees typically constitute a percentage of the rent and differ among companies.
- Advertising Fees: This charge includes photography for listings, online 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 acknowledge that some rental property owners may have concerns about hiring someone to manage their property. However, professional management frequently offers several advantages, especially if your time is valuable. By utilizing a property management company, you can save time and money, maintain the long-term value of your property, and enjoy a trouble-free rental experience. These benefits are applicable regardless of whether you own one property or multiple properties.
If you’re curious about the benefits of professional property management in Kailua, contact Real Property Management Honolulu today! You can reach us at 808-445-9500 or contact us online.
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