Having someone manage all of the needs of your rental property sounds great, but how much is that going to cost? Here are some things to know about the fee breakdowns of property management services.
Fees Depend on the Services Requested
There may be a flat fee for doing any management related to the property, such as attending to maintenance needs and hiring contractors. But you can also expect to pay for extra services you request. Read the package deal carefully to see what is and isn't included.
For example, answering tenant questions will fall within the realm of a property manager's basic job. But some companies may charge services for special occurrences, such as the need to place a new tenant in the property. And sometimes, you can get these services exclusively. For example, if you want to manage your own property but you don't want to deal with screening unqualified tenants, you could hire a manager just for that task.
Expect Initial Setup Fees
You might pay a one-time fee to get set up with the property management company. That labor goes above and beyond the daily management needs of the property, and it can involve collecting legal information, picking a manager to assign to your property, and picking preferred contractors.
It Costs When Managing Evictions
If an eviction is necessary, you might be responsible for shouldering the legal costs. So think carefully before you decide to evict a tenant, since it may involve both court fees and property management fees. On the other hand, the communications between your property manager and a tenant leading up to the eviction should be included in the basic property management package. If the property must be relisted and you want to market it, those costs may be yours as well.
Lowered Fees Occur with Fewer Tenants
On the other hand, you can get reduced fees in some circumstances. The biggest one is if you have a vacancy in the building. That creates a little less work for the property manager, so most companies are willing to help you out by reducing their fees.
The answer to the initial question is that property management service fees are highly variable. If you have a set budget to stick to, prioritize your list of tasks that you want to pass on to the property manager. They can work with you to create a price that is within your budget while making your life as a landlord as easy as they possibly can.Share