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 property management companies in Wilmington DE, make sure you review their pricing plans and compare services.
How do most property management companies charge for their services? Is there a different option? 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 Wilmington DE. 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 services and make sure that they know what they're paying for and that 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.
Many property management company pricing policies fall into one of the following two categories.
Under this option, the property management company will charge one fee every month for all the services they offer. The rate is not based on the amount of rent the property generates but rather on the size of the property and the services.
Since a flat fee is simple and easy to understand, it is a suitable 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 if you want to avoid surprises or "hidden costs" associated with fee changes.
Percentage of Rent
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. Most often, property management fees range between 8 to 12 percent of the gross monthly rent for each property.
Some property management companies will charge this fee even when the property is vacant. Properties with more than ten units can reduce the per-unit percentage depending on your property manager. However, property managers who charge a higher percentage on smaller properties ensure that they make more money from investors with small rentals and fewer properties.
Beware of additional costs! 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.
What could be "extra?" Additional fees can include critical property management task, like:
Listing your property on top websites
Chasing down late rent payments
New tenant placement fees
When choosing a property manager in Wilmington DE, 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. Making the right choice will go a long way in ensuring the success of your property and maximizing your returns. Overpaying for property management services or confusing pricing isn't necessary to partner with the property manager in the area! Do your due diligence to ensure the company you pick is transparent with all their fees.
Rentwell’s One Rate
At Rentwell, we understand that most property owners are concerned about property management fees. Often, deciding against professional property management is a result of 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 OneRate 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 Wilmington DE Property Management With Pricing That Delivers
There's no reason to lose the benefits of professional property management because pricing overcomplicated something that should be simple! Our OneRate pricing includes everything real estate investors need to successfully manage their properties, including marketing, leasing, tenant screening, maintenance, and more.
We have experienced professionals who are competent in handling all aspects of caring for your properties. We seek to set ourselves apart from other property management companies in Wilmington DE, 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.