How Much Do Property Managers Charge?

If you are thinking about hiring a property manager for your rental units, cost is a huge consideration. If you have never worked with a property manager before, you should be aware of all the costs involved. That way, you can decide whether it is worth the investment.

So, let’s dive into how much property managers charge.

How Much Does A Property Manager Cost?

Property management companies’ charges are typically based on a percentage of the monthly rent of the unit. They can charge anywhere from 4% to 25%. Others may charge a fixed monthly fee, so costs vary quite a bit.

You may have to pay additional charges, such as:

• an initial setup fee
• a tenant placement fee
• a lease renewal fee
• a maintenance fee
• annual inspections
• eviction fees
•  vacancy fees

Always make sure to read the fine print of any agreement with a property manager. You should know exactly what is included in the contract.

What Do You Get For The Property Management Rate?

The cost to hire a manager for your property may sound high. However, property management companies take over all management duties of your properties. This gives you the freedom to be completely hands-off. You just have to sit back and relax while the management company handles your investments.

Some basic property management services include:

• Advertising properties. They deal with everything that goes into marketing, such as taking photos and videos and creating online listings.
• Conducting viewings of properties.
• Making recommendations for repairs and updates to attract tenants.
• Running a rental price analysis to recommend how much rent you should charge.
• Screening tenants, running credit and background checks, and contacting references.
• Collecting monthly rent from tenants.
• Handling initial repairs and regular maintenance. Some may offer 24/7 maintenance.
• Enforcing the rules of the lease agreement.
• Resolving tenant disputes and handling all tenant communication.
• Visiting the site in emergency situations.
• Property managers should also provide you with monthly accounting  reports, copies of invoices, and year-end statements. Some may offer 24/7 customer support for you.