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 investigate the standard property management rates and the various types of fees that property management companies might levy.
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 typically varies between 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 necessarily be covered by the fees charged by all property management companies. Therefore, it’s essential to carefully review the fine print and ask questions before enlisting the services of 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: Typically, this fee is a one-time charge equal to one month’s rent. This fee comprises property marketing, tenant screening, and lease negotiation.
- Maintenance Fees: Maintenance fees can encompass various 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 fail to pay their rent on time. Late fees usually amount to a percentage of the rent and vary among different companies.
- Advertising Fees: This charge includes photography for listings, internet advertising space, and print materials. Advertising fees are occasionally charged along with other expenses, so it’s crucial to ask about this before finalizing any contracts.
We recognize that some rental property owners may be hesitant to hire someone to manage their property. However, professional management often delivers several advantages, particularly if your time is valuable. By employing a property management company, you can save time and money, ensure the long-term value of your property, and enjoy a hassle-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 Bangor, contact Real Property Management Acadia today! You can reach us at 207-561-7482 or contact us online.
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