Before you hire a professional property management company, you’ll probably want to know how much it will cost to have your investment property leased and managed. In the Bethesda and Washington, DC area, there’s not a lot of variance in what you’ll pay. However, some companies charge a flat fee and others charge a percentage of rent. Before you agree to a fee and sign a management contract, make sure you understand what services your rental properties will receive, and how you’ll be billed.
Property Management in Bethesda: Leasing Fees
The first fee you’ll encounter is the leasing fee, which most management companies charge to find and place a tenant. This usually includes a market analysis, marketing and advertising, and property showings. Your leasing fee should also cover tenant screenings, application processing, and the lease signing. The cost is usually the equivalent of one month’s rent. Some companies may charge a flat fee.
Property Management DC: Management Fees
The ongoing management fee is either a flat fee or a percentage of the monthly rent. This should include inspections, rent collection, bill payment, accounting, maintenance coordination, and tenant relations. When you’re talking to a management company, don’t let them overgeneralize the services you’re getting for your fees. It’s important to know exactly what your fees are paying for, and what may cost extra.
Real Estate Investing: Additional Fees
You might be impressed at a management fee that’s lower than average, but be careful. That small management fee might be possible because of all the additional fees that the management company will pass onto you. Some companies will nickel and dime you, charging additional fees for paperwork, phone calls, and other particulars. Make sure you know if your management fee is all-inclusive, or if you’ll have other costs as well. You don’t want to be surprised when you receive your statement every month.
When you’re comparing management fees, be sure to compare services as well. Remember that good management is worth paying for. If you have any questions about the cost of property management, please contact us at AW Manage.