Key Takeaways
- Hiring property management can save property owners time, stress, and money, but property management costs vary depending on services and property details.
- Common fees include setup, management, leasing, tenant screening, monthly rent collection, maintenance, inspections, and occasionally eviction handling.
- Transparency in service offerings and property management fee structures is essential when choosing a company to partner with.
You know what is the most difficult part of owning a rental property? Managing the day-to-day activities! Whether that is finding tenants for your rental property, determining the right monthly rent, responding to issues, and everything in between.
And that’s why rental property owners turn to professional Lubbock County property management services like Real Property Management Services. Although property management fees can be costly, it is usually nominal compared to the potential savings and rental income you stand to gain in the long run.
A good property manager will save you time, frustration, and money. Thereby, ensuring that you maximize your rental income and generate an optimal return on investment while you do other important things in your life.
With that in mind, as a property owner, just how much can property management costs add up to? In this blog by, you’ll learn what goes into property management pricing and what the different services entail.
What Fees Do Property Managers Charge for Their Services?
1. Account Setup Fee
Once you choose to work with a property manager, this is usually going to be the first property management fee they will ask you to pay. This property management fee will go towards establishing an owner–manager relationship.
This account setup will entail some paperwork and processes required to establish the working relationship.
2. Property Management Fee
This is going to comprise the bulk of the property management cost. And unsurprisingly so, this service will require the most effort from the property manager.
It’ll usually entail collecting the monthly rent once it becomes due per the terms of the lease, transferring the collected rent to the property owner’s bank account per the owner-manager agreement, handling repair and maintenance requests from tenants, coordinating the needed repairs with contractors and vendors and ensuring good workmanship, and more.
Most property management companies will have pages listing all their services on their website. This can make it easy to know what to expect after enlisting their services. As such, be wary of property management companies that aren’t transparent in this regard.
3. Leasing Fee
This property management fee goes towards leasing out the property to a new tenant. The fee usually covers a few processes.
For starters, it includes preparing the rental property for renting. The property manager will walk through the rental property, noting any issues that might need addressing before a renter moves in. Because, as a property owner, you’re legally required to rent out a unit that meets all the requisite safety, health, and building codes.
Aside from fixing these basics, you may also need to make certain upgrades to the rental property to make it competitive. You can rely on a good property manager to help you in this regard.
This property management fee also covers marketing the unit. Rental marketing involves syndicating a rental ad to places that prospective tenants are most likely to see it. Your property manager will usually use a combination of both online and offline marketing tactics to get your rental property maximum exposure.
Marketing may include listing the rental property ad on community bulletin boards, social media, and rental listing sites like Zillow. They may also create yard signs and flyers and posters as well.
Some companies include the leasing fee on the list of their property management fees and don’t charge it separately. So, again, make sure to pay attention to a company’s service page for clarity.
4. Tenant Screening
If you have been in the property management game for long, then you know the importance of screening prospective tenants for your rental property. But also equally important to note is how time-consuming the process can be!
But if you’re working with a property manager, you can rest assured knowing they will handle everything for your rental property. Furthermore, you can also rest easy knowing that they will handle the process as per the fair housing laws.
The process usually involves screening tenants based on their income level, credit rating, employment status, and rental history.
The goal is to ensure the tenant who occupies the rental property can pay the monthly rent on time, care for the premises, and abide by all terms of the lease.
5. Lease Signing
After a successful tenant selection process, the next step will be lease signing. You can rely on the property manager to draft a proper lease agreement, which conforms to all applicable landlord-tenant laws.
The property manager will also ensure the lease lists all parties’ responsibilities for minimal conflicts and misunderstandings.
6. Maintenance & Inspection Fees
Maintenance fees are another property management fee you can expect some property management companies to charge you. This is usually a percentage that is charged on top of any maintenance work that they have coordinated.
Routine inspections also come at a fee. The fee goes towards ensuring your rental property looks its best, ensuring the tenant stays happy and comfortable for multiple lease renewals.
Annual inspections usually involve checking for issues at both the property’s interior and exterior. On the exterior, they will be on the lookout for things like roof leaks, gutter blockages, cracks on walkways/driveways, and signs of pest infestations.
On the interior, they may check for issues like damaged floors, cracks on walls and ceilings, water leaks, and electrical malfunctions.
7. Eviction Fees
Evictions are quite rare as property managers utilize their years of experience in the industry to only rent to high-quality tenants.
But when they occur, you can rest assured that they will handle the process with the professionalism it deserves.
Conclusion
So, back to the question: how much does hiring a property manager cost? Well, there is no straightforward answer to this question. And why? Because a lot of factors come into play, including the location, scope of services, size, and number of the property.
For an exact quote based on a property management cost calculator, kindly reach out to a local property management company. Real Property Management Services is completely focused on providing quality residential property management services to property owners and residents in Lubbock County. We have over 35 years of experience in the industry.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
