Understanding the services included in property management fees can be confusing for those who are new to working with a property management company. It’s important to understand what is and isn’t covered by this type of fee so that you can manage your expectations and ensure that you’re getting the best value for your money.
The price of a property management fee will vary depending on the size and location of the rental property, and the services provided. The company may offer different packages depending on what services you require. Generally speaking, the higher the price of the fee, the more services you can expect to receive from the property manager.
So what exactly is covered with property management fees? Each property management company will offer slightly different services, but the following are standard services that are generally covered:
Day-to-day management
The property management fee generally covers daily management tasks of the property such as collecting rent, handling tenant requests and complaints, collecting security deposits, organizing maintenance and repairs, regular property inspections, legal advice, and accounting or financial management. Additional fees may or may not be charged for Non-Resident Tax assistance, ongoing property inspections, overseeing major renovations and more. It is important to read the terms of the agreement with the property management company to determine exactly what services are covered in the fees and what is additional.
Showings and tenant selection
The property manager will take care of tenant screening, which includes background checks, credit checks, and reference checks. The property manager will handle the entire process of screening tenants, including advertising the available unit, interviewing potential tenants, and completing the necessary paperwork and move-in inspection.
Advertising vacancies
The fees generally cover the cost of advertising vacancies to prospective tenants. This includes the cost of listing the property on rental listing websites, as well as any print ads. In addition, property managers will often spend time directly marketing the property to potential tenants by networking with real estate agents, property owners, relocation companies and other local businesses.
What it doesn’t cover
It’s important to note that a property management fee does not cover any of the actual costs associated with renting or owning a property. These costs include things like insurance, taxes, utilities and repairs. When you’re considering a property management fee, be sure to take into account the costs of these additional expenses.
Is it worth it?
Even though the property management fee may seem like a large expense, it can often be worth it in the long run. By taking on the burden of managing your rental, a property manager can help to reduce your stress and free up your time to focus on other aspects of your life. In addition, a good property manager can help to ensure that you’re getting the best possible return on your investment and that you don’t run into any legal issues relating to the Tenants or Landlords rights and responsibilities.
Ultimately, understanding what a property management fee covers is essential to making the right decision when it comes to hiring a property manager. By taking the time to research the services provided and considering the associated costs, you can be sure to make an informed decision that will benefit you in the long run. If you need help beginning your journey as a landlord and are looking for the best return on your investment, contact us today for a free consultation!
