Whether you're a landlord renting just one property, a large-scale real estate investor, or part of a REIT, you've got your work cut out for you.
From maintaining your property and bookkeeping to collecting payments, screening tenants, and even handling evictions, property management can become a full-time job! That's why so many savvy investors hire a team of experts to do the heavy lifting for them.
But how much do these services cost, and what do they include? Keep scrolling through this easy-to-understand property management guide for all that you'll need to know!
What a Property Manager Does
Property management experts help rentals operate smoothly. Most professional firms are happy to work with apartments, single-family homes, and small units like duplexes. They'll ensure that your property is well managed, attracting and retaining qualified renters.
Standard services might also include:
- Lease agreements, showing, and tenant screening
- Rent collection and owner distributions
- Preparing and serving notices
- Monthly financial statements
- Assistance with repairs and maintenance
For an additional fee, most are happy to handle:
- Lawn care and snow removal
- Annual maintenance
- Assistance with rehab and construction projects
Paying a Percentage of Monthly Rent
In most cases, property management companies charge between 8 and 11 percent of each month's rent. And, if your property is temporarily vacant, you'll probably pay slightly less, based on a fixed fee for upkeep.
So, if you're collecting $2,000 per month in rent, your property management fees will likely be somewhere around $200 based on an average price of 10%.
Fixed Monthly Fees
Some property management companies charge a fixed fee instead, factoring in property size and type, number of units, and services provided. The payment amount will vary greatly, based on your local market and what kind of rental you're operating. In some cases, property management could cost as little as $100 - and in others, it could add up to several thousand dollars per month.
This might be a better deal for small rentals and single units. But, when it comes to larger rentals like apartment buildings, this structure doesn't create the same incentive for property managers as collecting a percentage of each unit's rent does.
When you first hire a property management company, you'll likely be asked to pay an initial contract fee. This covers bookkeeping and banking expenses, initial inspections, and other details like licensing.
You'll also be asked to pay a bit extra for special services like annual inspections, large repairs and maintenance, and evictions. Removing a non-paying tenant can incur additional legal fees based on local laws.
Cleveland's Top Property Management Team
Now that you know a bit more about property management services and what you can expect to pay for them, it's time to hire a team of experts to keep your rentals running right.
Remax Haven Realty has been managing real estate in Northeast Ohio since 2010. We offer expert screening for tenants and their pets, and are happy to handle all the details from marketing and advertising to inspections, lease agreements, and rent collection.
Contact us today for a quote, and learn more about our guaranteed rental results within 30 days.