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Owning a rental property can be a lot of work. The day-to-day tasks that come with renting out your house can seem like a full-time job. Which is why hiring a property management company may seem appealing. There is one question that may come up with trying to figure out if hiring a property management company is the right move for your property: How much do property management companies charge?
Typically, property management companies charge anywhere between 8% to 12% of rent. This means that if the rent of your property is $2000, you would be charged a fee of $160-240. The higher your rent is, the more you will have to pay the property management company.
Make sure you read any agreements that you make with property management companies so you know what you agree to. Many property management companies charge a maintenance markup for coordinating maintenance. They may also charge for inspections, evictions, marketing costs, or renewals. If you have any questions about these extra charges, be sure to talk to the property management company so that there is a clear understanding of these extra fees. All of the fees mentioned are relatively standard, but pricing may vary. If a property management company avoids the questions when you ask about these additional fees, that may be a red flag. It is important to have a clear understanding of all fees and good communication with the property management company.
A less common way that property management company structure their charges is through flat rate charges. Meaning, that instead of charging 8-12% in management fees, they charge a flat rate a month. This can be a great payment structure, especially if your property takes in larger rental amounts. They may charge a flat rate anywhere from $150-$300 a month. This is great when renewals come around because even though you may increase rent, the amount that you pay to the property management company stays the same, so you can keep all the extra income from the increase!
Before signing a contract, it’s important to do your research to make sure the property management company you go with is trustworthy and professional. Read Google reviews, ask specific questions about the services they provide, and compare other property management companies in the area. Taking the time to research your options will help you to make an educated decision on who to go with.
Hero Property Management uses a flat rate cost structure, which makes us unique in the property management industry. We know the value of consistency and reliability. We believe that being transparent is one of the most important aspects of cultivating a relationship. We would love to talk to you about our management fees and the benefits of hiring a property manager. Reach out now to talk about pricing, along with the services that we provide, by calling or texting 801-845-4390 today!