Do you own a property or multiple properties and now you’re considering hiring a property manager? Are you wondering how much it costs to hire one? Let’s talk about what a typical fee agreement is and what other fees a property manager might charge. This will give you a better idea of how much you can expect to pay.
Typical Fee Agreement
Generally speaking, many residential property management companies charge a percentage of the monthly rental value of your property. The percentage is usually between eight and 12 percent, but some charge more or less than that. Also, expenses may be factored in.
There are property managers that only charge a flat rate per month, but most charge a percentage of the monthly rent that is coming in. Just weigh the pros and cons of what a property manager charges and how they charge it. Then you can make an informed decision.
Vacant Unit Fee
If you have a property that has a vacant unit or if your entire property is vacant, then you might have to pay a vacant unit fee. The property management company might charge a month or two of rent, up front. This allows the property manager to receive cash needed to advertise the property or showing it off to potential renters, lease paperwork and things of that nature.
Paying a vacant unit fee is usually worth it. This is because they will take care of finding a tenant to occupy it. As you know, finding good tenants to occupy property is tough and it’s just too easy to choose tenants that are likely going to be bad renters.
A property manager may have their own maintenance staff that works full-time or part-time. If that’s the case, then the chances are you’ll have to pay maintenance fees, but some companies may include maintenance in their general fees. Maintenance is important, but you still don’t want to overpay for it, nor do you want to be blindsided by the charges. Make sure you review your agreement before you sign anything because you want to have a clear idea of what you’re going to be paying for and when you will be paying for it.
Every now and then you might have to evict a tenant, who may have lost their jobs or ran into financial difficulties and cannot pay their rent. Some tenants just don’t want to pay their rent. Regardless of what their reasons are, you may have to evict them.
The eviction process is quite complex. This is why many property managers charge a fee to do this. Some don’t, but many will charge extra if they have to handle the eviction process. This fee is well-worth paying if you don’t have a solid understanding of the eviction process.
Not all property managers charge the same baseline price or do they charge the same fees. This is why it’s important to request prices from multiple companies. Afterwards, you can decide which property manager you should hire. To know more visit the website at https://3cre.com/cincinnati-property-management/.