Property management costs money, even if you do it independently. So, naturally, hiring an excellent property manager to help you maintain your properties will also cost money. But what exactly will you be charged for?
Every smart businessperson should know to research how much they will probably have to pay before they hire any kind of help. Property managers can charge for a range of different things, from individual maintenance services to initial setup fees.
Understanding how much a typical property manager charges is essential, so you know what you’re getting into. Plus, it’ll be good to understand just how valuable their property management services can be.
What Kinds Of Fees To Expect From A Property Manager
Because every property managing company is different, the specific company you are looking at may have particular ways of charging their clients. However, most management companies generally charge for the same basic services.
Some typical fees that you can expect from your property manager are the following:
An Initial Setup Fee. When you first start to work with your property manager’s company, you may be charged for the initial setup. Not every company will charge for initial setup, so you should ask your property manager if you will be charged for it.
The initial setup process may include inspecting your properties and alerting your current renters that the new property management company will be maintaining the properties.
A Monthly Fee. Many property managing companies will charge you every month for their services. This fee’s amount might be a fixed number, or it may depend on what kind of services they are doing for you, what kind of properties they look after and so on. In general, a property manager will have a set list of tasks for every month, such as inspections or keeping up with maintenance, so it’s recommended to learn exactly what they will be doing before you hire them.
A Percentage Of The Rent. Your property manager may take a percentage of your monthly rent in lieu of a fixed monthly fee. If they do, you should contact them and ask what percentage of the rent they will take. Standard property management companies will take anywhere from 4 to 10 per cent of the rent, but this number could change depending on the company.
Maintenance Service Fees. Extra maintenance work that is not covered in the typical service package that you signed up for may cost some extra money. Maintenance could include anything that involves cleaning and maintaining your properties. Additional jobs may pop up due to different factors, and special occurrences may require hiring extra tradespeople like plumbers or electricians. If this happens, you may be charged extra for these happenings.
Tenant Placement And Eviction Fees. A fantastic thing that property management companies can do for you is help you find, place and evict tenants if needed. Doing this on your own without experience or a set system is frustrating and very trying, so having professional assistance is great.
Certain companies may charge a fee for every time they have to find or evict one of your tenants. This service might involve marketing, vetting potential renters and helping the renter move in or out of the property.
Two important things to remember are:
- As mentioned above, every company is different. Absolutely always ask your prospective property manager about what they will cost before you hire them. They should be upfront and very clear about what you should expect from them.
- Different kinds of properties may have different fees. For example, rental property management may have specific services. Furthermore, residential and commercial properties might also have different fees.
Is The Help Worth The Money?
Now you could have a big question on your mind: Are all these fees worth it? Property managers can greatly help any landlord who values efficient work and tenant satisfaction. With their expert assistance, you can enjoy these benefits:
- A More Efficient Job. Well-trained property managers know what they’re doing. They’ll know the best ways to organise their work, deal with issues and help you with whatever you are doing. With them, a frustrating situation can turn into a simple task.
- Happier Tenants. Your renters will surely appreciate your new property manager’s hard-working attitude. Property managers always do their best to make sure that you and your tenants are happy with their services.
- Less Stress. As you probably already know, property management can be stressful! Especially if you are doing it on your own. With a manager’s help, you can enjoy more free time and far less unhealthy stress.
Where Can I Learn More About Management Fees And How A Property Manager Can Help Me?
Rely on us at Reliance Property Management for some of the best help in New Zealand. Our expert team of skilful people has plenty of experience helping people just like you, and we’d be thrilled to assist you.
Make your life and the lives of your tenants better with Reliance Property Management.