When considering hiring a property management company, many property owners focus on the fees, but few understand what these fees actually cover. This blog will provide an in-depth look at property management fees and explain what services they typically include.
Leasing Fees
Leasing fees are usually charged when a property management company finds a new resident for your property. These fees often cover advertising, showing the property, screening applicants, preparing the lease agreement, and handling the move-in process. It’s a one-time fee that can vary depending on the property’s rental rate and market conditions.
Management Fees
The core fee of property management is the monthly management fee, typically a percentage of the rental income (usually 8-12%). This fee covers the day-to-day management of your property, including rent collection, handling maintenance requests, and coordinating repairs. It’s an ongoing cost that ensures your property is being properly cared for.
Maintenance Fees
Some property management companies charge a maintenance fee or mark-up on repairs and services. This fee helps cover the cost of coordinating repairs and maintenance, using their trusted vendors, and ensuring timely response to resident requests. It’s essential to clarify what maintenance fees are charged and how they’re calculated before signing a contract.
Eviction Fees
Evictions are unfortunate but sometimes necessary. If an eviction becomes necessary, property management companies may charge a separate fee to handle the legal process, from filing paperwork to attending court hearings. This fee is typically higher than other service fees but ensures that the eviction process is handled professionally and legally.
Rosenbaum Realty Group is dedicated to optimizing property management for owners and investors, helping them achieve their financial targets. We’re ready to help you get the most out of your rental properties. Contact us to discuss how we can collaborate on managing your real estate assets for sustainable success.
