When investors are looking for a quality property manager to help them with their properties, one of their biggest questions is often what they're getting for the fees they're paying. Understanding the average property management fees and what services those fees provide can make the decision to hire a property manager much easier.
While not every landlord chooses to work with a property manager, doing so has big benefits. You don't have to manage your investment properties on your own or worry about the maintenance, upkeep, and other issues that come with them. Here's what to know about property managers and the fees they charge.
How Much Should You Expect to Pay?
Generally, you can expect the fees for property management to be a percentage of the property's monthly rent. While it can vary from one management company to the next, the standard is typically 8-12%.
As an example, if you assume an average rate of 10% on a property that rents for $1,800 per month, your management fee would be $180.
That amount covers a lot of valuable services, though, because you essentially don't have to do anything at all with your property. You can enjoy the rental income and know that your management company is working hard to find good tenants, take care of maintenance, collect rent, and reduce your vacancy rate.
Whether you have one property or a number of them, good management often goes a long way in reducing the stress and strain you might feel as a landlord. In that sense, it's definitely worth paying property management fees, but it's still understandable that you want to get the best deal possible.
Can You Get a Package or Flat-Rate Deal?
Sometimes, you have options for the kind of fees you pay, which can help you get a management fee structure that more closely meets your needs. For example, while the standard, percentage-based fee is the most common option, there may also be a flat-rate choice where you always know what you're paying for all the services you're looking for.
The OneRate™ option we offer means you can pay a flat rate for the management of your property. Our fixed monthly rate includes all of our property management services for a property and is an all-inclusive package instead of a percentage-based fee. Having this kind of pricing model can make it easier for you to budget your management expenses.
What Services Can I Expect?
By working with a property management company, you can expect valuable and accurate information and help from professional team members with the right training. You'll have less hassle as you work toward your real estate investing and financial goals when working with rental managers who understand real estate and rental properties.
You also want to be sure you're getting the right services for the property management fees you're paying. Getting low prices is one thing, but property owners must consider more than just the cost. You also want value, which comes from the right management services vs. managing properties yourself.
In short, you need to get enough for your money and see a boost to your income. There are some specific services you should expect, including:
- Advertising Rentals
- Filling Vacancies
- Conducting Credit and Background Checks
- Processing Applications
- Coordinating Lease Signings
- Managing Full-Service Repairs
- Collecting Rent
- Handling Accounting
- Coordinating Evictions and Attending Court
Whether you pay a flat rate and get all those services or you choose a percentage-based option, you can feel confident that the right Delaware County property management company is working with your best interests in mind. The goal is to make sure you're getting quality and value for your money, and the right company will provide you with that and more.
Take a Tax Deduction and Increase Revenue
In addition to getting professional services, many average property management fees are tax deductible for landlords. Not only can you deduct these fees from your taxes, but working with a management company can also help you increase your revenue. That's a winning situation on both counts, giving you important financial opportunities and additional peace of mind.
Naturally, you want to grow your revenue as much as possible when you have rental properties, but make sure you're not so focused on that growth that you aren't willing to spend any money. Working with a management company adds value that goes above and beyond the amount it costs for them to manage your properties.
Rentwell Delivers Professional Services and OneRate™ Property Management Fees
With all the benefits you can get from the property management companies Delaware County, PA residents trust, having quality management is worth it! So, if you're ready to have the property management services you need for your rental properties and peace of mind and optimize your returns, let us help you handle your investment property needs.
Reach out to us at Rentwell to learn more about our services and pricing.