If you own real estate—especially if you own multiple residential, commercial and/or industrial properties—you may need to hire someone to oversee things on your behalf. Hiring a property manager can help you free yourself up for more important concerns and is an excellent way to preserve the value of your property while generating income. But how much will hiring a property manager set you back?
There’s no one answer to this question. The reason for this is that property managers, including many Northern Utah property management companies, base their fees on several factors. Let’s take a quick look of what helps determine property management fees:
Size and types of rental property
Are we talking about a large property spanning several acres? A vast commercial space? A sprawling multi-family residential complex? You can bet your bottom dollar you’ll be charged a larger fee for bigger-sized often multi-tenant concerns than you would if you were simply renting out a small single-family cottage or a duplex.
Condition of the property
How old is the property? Is it in excellent repair or does it need a good bit of work? Is it in need of constant maintenance? When managing a property, how old it is can be a factor in determining the management fee, since older properties can cost more to maintain.
Location
How close a property manager’s office is from your property also counts for something. The more time it takes to get to your property and back, the higher the percentage charged is likely to be. Then, too, owners of properties in areas that command higher rents may also reasonably expect to be charged more in fees than those who own property in places with lower rent.
Extent of services
There are many facets to managing a property that go well beyond just collecting the rent. Filling vacancies, handling repairs, evicting tenants, and maintaining financial records for tax purposes are only a few of the other services provided.
Breaking things down
Initial setup fee. When you onboard with a property manager, you may be charged a small amount to set up your account. This amount will typically run to less than $500, and some management companies may charge nothing at all. This fee will cover the costs of the initial inspection of your property as well as informing tenants about the new changes in management.
Monthly management fee. When you sign on the dotted line, you need to understand what services are included. A flat fee or a percentage of the monthly rent could be collected.
Other fees. Then there are a variety of other fees that could be charged for specific services. If asked to find and screen tenants, your property manager will likely charge a tenant placement fee. If they’re charged with keeping common areas clean, they may charge a maintenance fee. Want to avoid the time and effort needed to file paperwork for an eviction? Then expect to pay corresponding eviction fees. And, as is the case with many contracts, early termination of the management contract will mean ponying up pre-termination fees.
Need to know more? Get in touch with the top Ogden, Utah real estate professionals today! Call Destination Properties at 801.745.2009 or send an email to info(at)destinationproperties(dotted)com.