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All You Need To Know About Property Management Fees

When you are a property owner, it can be hard to know how much professional property management will cost. There are many factors that come into play when determining the cost of services and it is important to understand what they are in order to make an informed decision. Let’s take a look at the various fees and expenses associated with property management services.

Management Fees

Most property management companies charge an upfront fee for their services, which is typically based on a percentage of the annual rental income from your rental property. This fee covers the costs associated with advertising, tenant screening, maintenance, inspections, and other administrative tasks. This fee can range from 8-15%, depending on the size and complexity of your rental property.

Maintenance Costs

Maintenance costs vary depending on the type and complexity of repairs needed for your rental property. Generally speaking, minor repairs such as small plumbing or electrical issues will cost less than major remodeling projects such as installing new flooring or appliances. Additionally, most landlords are responsible for any additional costs related to pest control or landscaping services.

Resident Screening Fees

The majority of property management companies also charge a screening fee for each prospective tenant who applies to rent your unit(s). This fee helps cover the cost of background checks and credit reports so you can make sure you’re renting to reliable tenants who are more likely to pay rent on time and stay longer in your rental unit(s). The average cost per tenant is typically around $35-$50.

Property Tax Fees

In addition to these fees, some states may require you to pay a tax on your rental income if you work with a professional property manager. Depending on where you live, this tax can range from 1-4% of your total rental income for that year. It is important to check with your local governing body about any taxes that may be applicable in your area before agreeing to any contracts with a professional property manager.

When it comes down to it, there are many different factors that go into determining the cost of professional property management services for your rental properties. Knowing all the costs associated with hiring a professional manager can help you make an informed decision about whether or not this service is right for you as a landlord or investor in real estate properties. With comprehensive knowledge about all fees and expenses related to professional management services, you can protect yourself against surprises down the line!

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