Property Management CostPosted by Jordan Muela in Property Management Articles
There will be significant variation in the costs that owners should expect depending on several factors including the location of the property, the size/condition of the property, the level of service you require and of course the management company itself.
Property management companies typically charge between 4-12% of monthly rent (10% is common for single-family homes) There are other pricing models such as those that include flat fees, or something in between that sets both a percentage and a flat fee and requires you to pay which ever is lesser or greater (depending on the manager).
What you want is a simple cost structure that is transparent and consistent. Problems arise when either the property manager does not disclose all the costs or the property owner is not diligent to fully understand what they will be charged in all circumstances.
A good property management company will more than earn their fees by increasing revenue while decreasing costs not to mention the other benefits of hiring a property manager.
Make sure that you interview a number of property managers before you hire and go through the interview/proposal process with at least three companies.
Are you a quality property manager?
- Property Management Fees - Part I
- Property Management Services - A Complete List
- Hiring a Property Management Company
- What Are The Benefits of Using a Property Management Company?
- Property Management Fees - Part II
- Contract Termination
- Handling Tenant and Owner Funds
- What to Look for In a Property Management Contract
- 11 Questions for Determining if You Need a Property Management Firm
- Benefits of Using A Property Management Company