Real estate management firm5/16/2023 ![]() ![]() You may run into this fee if you are trying to engage the property management firm while the property is vacant. Some firms charge one month’s rent upfront. Here are a few common fees that many property management firms will charge when applicable. It’s not uncommon for additional fees to pop up from time to time. ![]() Property Management Fees for “Hands-Off” Owners A good property manager will always be worth the money. Studies have shown hiring a property manager can cut your vacancy rate in half.Ĭonversely, going cheap with a property management firm can wind up being expensive. With the best property managers, paying a little bit more is a wise investment, because it helps enhance the value of your property, and they help retain quality tenants. This may or may not be a good deal for you depending on your property’s rental value and the scope of services covered in the agreement, among other factors. While most property managers charge a percentage of the monthly rental payment, some companies may offer a monthly flat rate per unit. You’ll either pay your property manager a percentage of the monthly rent or a fixed monthly property management fee.Īs a baseline, expect to pay a typical residential property management firm between 8 and 12% of the monthly rental value of the property, plus expenses. There are two basic ways fees break down. Types of Property Management Fee Agreements This post will discuss types of property management agreements, additional fees that may apply for each management style, what to keep an eye out for when entering into an agreement with a property management firm, and how to decide whether hiring a property manager is the right decision for you. Another owner may want to take a more ‘hands-off’ approach.įees also vary by location, the type of property, and the estimated man-hours involved in providing property management services. One owner may only want to delegate certain tasks and functions to a property manager while remaining very ‘hands-on’ in other areas. Hiring a property management company is a proven way to bring in more revenue with less work, but how much do they actually charge? As with so many things, the answer is “it depends.” Property management firms vary widely in the scope of services they provide, so start by asking yourself what you want a property manager to do for you. ![]()
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