Published May 26, 2021. Updated September 21, 2023.
There are many benefits of hiring a property management company, especially when you have a growing real estate investment portfolio. However, one thing to keep in mind is the cost of the convenience that these professionals offer.
When choosing one of the best Philadelphia property management companies to handle the daily tasks for your rental properties, make sure you review their pricing plans and compare services.
So, how do most property management companies charge fees for their services? Is there a different option for the best rental management experts in the area? Here is what property owners should know!
How Property Management Companies Charge for Their Services
There's no such thing as "free" professional property management in Philadephia, PA. However, not all property management companies deliver the same quality of services or pricing structures.
From flat fees to charging a percentage of the monthly rent, comparing pricing plans is essential when looking for the right property manager to care for your properties.
Investors must also review a company's services and make sure that they know what they're paying for. To get the best value for the property management fees you pay, your property managers deliver what they promise according to their fee structure.
The number of properties you own (and the type of rentals) can also influence your professional property management services costs.
So, what does most pricing look like? Many property management company pricing policies fall into one of the following two categories.
1. Flat Fees
Under this option, a property management company will charge one property management fee every month for all the services they offer.
With this solution, the rate is not based on the amount of rent the property generates (which can fluctuate from property to property or year to year, depending on monthly rent amount changes from lease to lease). Rather, a flat fee stays the same based on the size of the property and the services the company delivers.
Since a flat fee is simple and easy to understand, it is an ideal option for first-time landlords and property owners who prefer simple pricing plans without complicated percentages or add-ons. You may also want to hire a flat fee property management company to avoid surprises or "hidden costs" associated with fee changes.
2. A Percentage of the Monthly Rent Amount
Other property management companies will set their fee as a percentage of the monthly rent. The percentage collected from investors varies depending on the company you hire.
How much are property management fees when based on a percentage? Most often, property management fees range between 8 to 12 percent of the gross monthly rent for each property.
Additionally, it's important to recognize that some property management companies will charge this fee even when the property is vacant. However, sometimes, properties with more than ten units in the building can reduce the per-unit percentage depending on your property manager.
Also, note that property managers who charge a higher percentage on smaller properties ensure they make more money from investors with small rentals and fewer properties. So, when evaluating the value and services of a company that offers a percentage-based fee structure, make sure you run the numbers based on the number of rental properties they'll manage to ensure it's worthwhile.
Beware of Additional Fees
Is the "monthly fee" all-inclusive? In many cases, property management companies charge extra fees for various services—over and above a monthly management fee.
It's essential to be aware of additional costs that may not be included in a flat rate or percentage-based fee structure, even if the company offers pricing consistent with average property management fees.
What could be "extra?" Additional fees can include critical property management tasks, such as:
Listing your property on top websites
Chasing down late rent payments
New tenant placement fees
When hiring a property manager in Philadelphia, it is important to evaluate your specific needs and requirements to determine whether you need additional services besides the day-to-day management of your property. Read the contract thoroughly before signing and ask questions about fees that aren't clear.
Choosing a company to manage your properties is a serious decision. It's a crucial step in ensuring your rental property's long-term success and profitability.
Don't feel like you have to overpay or navigate convoluted pricing structures to work with the best in the business. Conduct thorough research and due diligence to select a management company that is transparent about all their fees.
A trustworthy manager can boost your rental income, lower vacancies, and even enhance the value of your property. It's about finding a partner as committed to maximizing your returns as you are. Opt for clarity, professionalism, and a proven track record for peace of mind.
Rentwell's OneRateTM Model
At Rentwell, we understand that most property owners are concerned about property management costs. Often, deciding against professional property management results from expensive services or unclear pricing.
We also know that picking the right property management company can boost your returns and help you meet your long-term goals! This is why we are committed to ensuring pricing transparency. Our pricing model is designed to meet your specific needs without confusion or hidden costs.
Our OneRateTM model is a fixed monthly rate that includes all the services we provide. The all-inclusive package is simple to help you avoid surprises.
When you choose this fee arrangement, you can enjoy peace of mind about the quality of services we deliver for each of your properties—without the fear of overpaying for services that don't meet your needs and improve your income.
Choose Philadelphia Property Management With Pricing That Delivers the Best
There's no reason to lose the benefits of professional property management because pricing overcomplicated something that should be simple! Our OneRateTM pricing includes everything real estate investors need to successfully manage their properties, including marketing, leasing, tenant screening, maintenance, and more.
The Rentwell team is made up of experienced professionals who are competent in handling all aspects of caring for your properties. We seek to set ourselves apart from other Philadelphia property management companies by offering quality services that will give you peace of mind—at one simple rate!
Try our free One Rate Calculator to see how Rentwell's pricing compares to other property management companies.