Is your real estate investment turning into a major time suck? You were supposed to use this investment to make passive income, but now you’re spending all your free time on the property. If this situation sounds familiar, you’re probably wondering, “how much does a property manager cost?”
Average property management fees vary depending on the property and how much rent you charge. The fees are worth it because the property manager will help you find tenants, screen tenants, collect rent, schedule property maintenance, and more.
The cost of property management is usually minimal compared to the amount of money you can generate from real estate investment.
In the article below, you’ll find a guide to property management fees in 2022. This article should help you decide if you can afford a property manager for your investment. Read on to learn more about management fees.
Most Property Managers Take a Percentage of Rental Income
When you’re thinking about the pros and cons of property management, think about how much you’re able to charge in rent.
The more expensive the rental property, the more you’ll end up paying a property manager. Generally speaking, property management companies tend to charge anywhere from 8 to 12% of the property’s monthly rent.
Some Property Management Companies Charge Flat Fees
If you’re wondering how to choose a property management company, think about whether you’d prefer to pay a flat fee or a percentage of the monthly rent. There are some advantages to paying flat fees.
For example, you will continue to pay the same flat fee even if you start to charge more for rent. Property managers who charge a flat fee generally base the fee on the size of the property, the location, and the number of tenants that the property can hold.
Be sure to ask property management companies how they set their fees before agreeing to work with the company.
Property Management Fees Pay for a Host of Services
Did you know that you might actually make more money on your investment after you start paying property management fees? That’s because property managers can help you keep your property occupied.
While you might not have time to find new tenants and review applications, property managers are paid to perform these tasks.
A property management company will proactively find new tenants when the old tenant’s lease is about to run out, thereby ensuring that your property doesn’t sit vacant. You can click this link to get more info about the benefits of property management companies.
Reviewing the Average Property Management Fees in 2022
If you charge tenants $1,000 in rent each month, a percentage-based property management fee will cost anywhere from $80 to $120 per month.
Average property management fees for flat-rate pricing models usually cost about the same. You can learn more about property management by reading all the articles that go live on this website each week.