If you own rental properties but don’t want to deal with the daily tasks and responsibilities that come with being a landlord, hiring a rental property manager can be a wise decision. A rental property manager can handle everything from finding tenants and collecting rent to handling maintenance requests and dealing with legal issues. But how much does it cost to hire a rental property manager?
The cost of hiring a rental property manager
The cost of hiring a rental property manager can vary depending on a variety of factors, including the location of your property, the size of the property, the services provided by the manager, and the level of experience and expertise of the manager. Generally, you can expect to pay anywhere from 8% to 12% of the monthly rental income for full-service property management.
Factors that influence the cost of a rental property manager
There are several factors that can influence the cost of hiring a rental property manager. These factors include:
1.
Location of the property
Rental property managers in high-demand areas or expensive cities may charge higher fees due to the increased cost of living and property values.
2.
Type and size of property
Managing a single-family home may cost less than managing an apartment complex, as the latter involves more units and complex management tasks.
3.
Services provided
The more services the property manager offers, such as marketing, tenant screening, and maintenance, the higher the cost is likely to be.
4.
Experience and expertise
Property managers with extensive experience and a solid reputation may charge higher fees compared to those who are just starting out.
5.
Local market competition
In areas with a high number of rental properties and property management companies, fees may be more competitive and lower compared to areas with limited options.
Additional FAQs
1.
Are there any upfront fees when hiring a rental property manager?
Some property managers charge an initial setup fee to cover the costs associated with onboarding a new property.
2.
Are there any additional fees besides the monthly management fee?
In addition to the monthly management fee, some property managers may charge for specific services, such as tenant placement or coordinating legal matters.
3.
Do property managers charge for advertising and marketing expenses?
Some property managers include advertising and marketing expenses in their monthly management fee, while others may charge it as an additional fee.
4.
Do property managers require a long-term contract?
Some property managers may require a long-term contract, while others offer month-to-month agreements. It’s important to clarify this before signing any contract.
5.
What can I expect from a full-service property management package?
A full-service property management package typically includes advertising and marketing, rent collection, lease agreements, maintenance coordination, tenant screenings, and legal assistance.
6.
Can I negotiate the management fee with a property manager?
It’s possible to negotiate the management fee with a property manager, especially if you have multiple properties or unique circumstances. However, keep in mind that quality service often comes at a fair price.
7.
Are property management fees tax-deductible?
In many cases, property management fees are tax-deductible. Consult with a tax professional to understand how these deductions apply to your specific situation.
8.
How do I find a reliable and affordable property manager?
You can start by asking for recommendations from fellow property owners or searching online directories. It’s essential to conduct thorough interviews, check references, and review contracts before making a decision.
9.
What happens if I’m not satisfied with the property manager’s performance?
If you are unsatisfied with a property manager’s performance, review the termination clauses in your contract and communicate your concerns. If necessary, explore legal options and find a replacement manager.
10.
Should I hire a property manager for a single rental property?
Hiring a property manager is not limited to managing multiple properties. If you value your time, want professional assistance, or find managing a rental property challenging, a property manager can still be beneficial for a single property.
11.
Do property managers handle evictions?
Yes, most property managers handle evictions if necessary. However, it’s important to clarify the eviction process and associated costs with potential property managers before hiring.
12.
Can I self-manage my rental property to save money?
It is possible to self-manage your rental property to save money, but it requires significant time, effort, and knowledge of local landlord-tenant laws. Consider your capabilities and availability before making a decision.