A property management company can be a great asset. They can help you with finding and keeping great tenants who always pay on time. They can help you get rid of a tenant who doesn’t, and keep a property well maintained. If you have considered hiring a property management firm to help you with your rental units, you may have found yourself asking “How much will it cost me?” That is a fair question, but the answer depends on what the specific needs of you and your property are.
Despite the wide range of services that a good property management firm may provide, it might not be as cost prohibitive as you may have assumed. There are a few different possible payment structures to take advantage of.
Percentage of monthly rent:
Typically, a property management company will charge a percentage of the monthly rent. The rates can vary, but it is typically between 5% and 15%. The advantage of this type of arrangement is that if you don’t have anyone renting the property, you don’t pay. For small rentals and units, this is the most typical payment structure.
Flat Rate:
Especially if you own a large building with a lot of rental units, the property management company may ask for a flat fee no matter how many units are occupied at one time. Property management firms typically request this if they expect your property to use a large portion of their time and resources. This type of a payment arrangement has the benefit of consistency. It is easier to plan and maintain ledgers when the cost will not vary from month to month.
Project-based:
You might find yourself only needing the company to help out with a particular task, such as finding and background checking a potential tenant. When you hire a property management firm for a particular service you will be charged accordingly. For our example above you may end up being charged the equivalent to one month’s rent. The best thing to do is to call the company and ask for a quote.
As you can see, the amount you will pay varies greatly depending on what type of rental property you have and what your needs are. The best way to find out if a property management company will work with your budget is to call and ask for a quote.
Katy Property Management is a leading property management agency throughout California and Texas. We want to help all property owners efficiently and successfully run their rental properties. Give us a call at 281-398-9844 for more information and to learn more about our low rates. Our customer service representatives and agents will be happy to assist you by helping you sign up for the management services for your property type.