What are Property Management Fees?
Property management fees are paid to a property management company for their services. The fees cover a range of services, including marketing the property, finding and screening tenants, handling maintenance and repairs, collecting rent, and handling tenant disputes. The fees can be charged as a percentage of the monthly rent collected or a flat fee.
How are Property Management Fees Calculated?
The cost of property management fees varies depending on several factors, including the type of property, the location, and the services provided by the management company. Typically, property management fees are charged as a percentage of the monthly rent collected. Flat fees are also sometimes used for calculating fees. This is where the property management company charges a fixed monthly or yearly fee for their services. The flat fee varies depending on the services provided, the size of the property, and the location.
What Services Do Property Management Fees Cover?
The services provided by property management companies can vary, but they typically include the following:
Marketing the Property
One of the primary services offered by property management companies is marketing the property to potential tenants. This includes advertising the property online, in newspapers, and through other channels to reach a broad audience.
Tenant Screening
Property management companies also handle the process of finding and screening potential tenants. This includes verifying employment and income, checking references, and performing credit checks to ensure the tenant fits the property well.
Rent Collection
Another critical service provided by property management companies is collecting rent from tenants. This includes setting up a system for rent payments and handling any late payments or disputes.
Maintenance and Repairs
Property management companies also handle the maintenance and repair of the property. This includes routine maintenance such as lawn care, cleaning, repairs, and renovations when needed.
Tenant Disputes
If there are any disputes between tenants, property management companies can step in to resolve the issue. This can include mediation or legal action if necessary.
Conclusion
Property management fees are a significant cost to consider when renting out your property. These fees cover a range of services, including marketing the property, finding and screening tenants, handling maintenance and repairs, collecting rent, and handling tenant disputes.
At Brh Property Management, we like to make our property management fees as transparent as possible; please visit our website to see how.