Managing a vacant property can be more labor-intensive for a property management company than when your home is occupied by a tenant because there are more potential problems that could arise.īecause utilities need to be left on for showings, water leaks could unexpectedly occur or security lights could burn out. Coordinating the transition to a new property management company if you purchased a turnkey rental property.Assisting with applying for any required business or tax licenses.Opening a bank account in your name if needed.Creating your account for bookkeeping purposes.Most property management companies will charge a one-time setup fee of around $300. Oftentimes, a property management company may charge for additional services above and beyond the monthly fee collected: Property management fees are not always all-inclusive. Great Jones broker licenses Additional Property Management Fees While a flat fee structure might seem to be a good deal at first glance, management companies collecting a fixed fee may not be as motivated to maximize the rental income from your property. Normally the fixed fee is based on the property type, square footage, and the property management services provided.Īs a rule of thumb, the fixed property management fee for a single-family home may run around $100 per month, but management fees will vary from market to market. Some property management companies offer a fixed fee structure in lieu of collecting a fee based on the percentage of a month’s rent. Vacant properties sometimes require more work from the management company, such as conducting weekly inspections for potential break-ins or the presence of squatters.Īre you still manually collecting rent from your existing tenants? Check out Stessa rent collection – a free tool that makes it easy for tenants to pay on time, and automate key tasks like deposits, receipts, and accounting. If a property is vacant, management companies generally charge a fixed fee or a fee equivalent to the anticipated monthly rent once the property is leased to a new tenant. ![]() ![]() ![]() If the rent on your home is $1,200 per month the property management fee would be $120 based on an average fee of 10%. Most property management companies charge a monthly fee of between 8% – 12% of the monthly rent collected. Property management companies generally structure their fees in two main ways, as a percentage of the rent collected or a flat monthly fee: Percentage of Monthly Rent Simplify your rental property reporting Learn More
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