It’s a great time to be a landlord, but the job isn’t without its unique challenges.
In recent years, we’ve seen more people renting than at any point since 1965. The rental market has continued to stay strong and isn’t likely to be going south anytime soon.
However, renting out property isn’t as simple as collecting a monthly check. There are a number of responsibilities involved that can be difficult to juggle on your own, especially if you’re working with multiple properties.
Luckily, property managers are available to take on these tasks for you. So, how much does property management cost? Keep reading to learn more about what you can expect to pay.
Do You Need a Property Management Service?
Renting a property can be lucrative, but it’s not without its difficulties. For example, locating tenants, handling conflicts, and taking care of maintenance can all end up being a full-time job. Property managers are designed to take on these stresses for you, all for a small portion of your monthly rent charges.
How Much Does Property Management Cost?
Every property management service is different, so there is no single answer to this question. Most companies will charge between 8-12% of your monthly rent. The average rate is about 10%.
Fees Associated with the Cost of Property Management
If you’re wondering, “how much does property management cost?”, the previously mentioned expenses aren’t the only thing to consider.
In addition to the baseline percentage of rent earnings that property managers charge, there are other fees that could apply. Below are some additional costs that could be associated with your property management service.
Vacant Vs. Occupied Unit Costs
For vacant units, a property manager might charge an upfront cost. This is usually their standard rate for one month’s rent. If the property manager is placing renters on the property for you, this helps cover their costs of advertising, paying a real estate commission, or preparing the lease paperwork.
It’s worth noting that only around 6.5% of rental homes are currently vacant, so landlords have a good chance of keeping their units occupied. Still, it’s wise to be prepared for these costs if they do come up.
Additionally, there are some property management services that will only charge their fee when your rental unit is occupied. As mentioned before, this will all vary depending on who you go with.
Some property management services will staff a full-time maintenance crew to take care of repairs and other work around your property. If this is the case, expect to pay a fee based on the work done. Some services will offer routine maintenance with your contract, so be sure to check these details when you sign.
Locating New Tenants
A property management service might charge an additional fee every time new tenants are placed on your property. This might be a larger percentage of rent than they’d typically charge. Some services will charge around half of your first month’s rent.
Finding the Right Property Management Service
A property manager can help ease the burdens of running your rental property, all while allowing you to continue making a profit. Considering the time and energy you save, it’s a win-win for everyone involved. Now that we’ve answered, “how much does a property manager cost?”, you can start locating the service that’s best for you.
Contact us now to learn more about what Outland Real Estate can do for your rental property.