Most property management companies charge a monthly fee of between 8 and 12% of the monthly rent collected. The fees charged by property managers may vary depending on factors such as location, type of property, and services provided. Property managers typically charge a percentage of rental income, ranging from 8% to 12% of monthly rent. Some may also charge additional fees for tenant placement, maintenance, and administrative tasks. It's essential to get quotes from different property managers to find the one that best fits your specific needs and budget.
As a base, you expect to pay a typical residential property management company between 8 and 12% of the monthly rental value of the rental property, plus expenses. Property managers calculate commercial property rates a little differently, so be sure to ask for a breakdown of the fee structure if you're hiring commercial property help. The fee includes the cost of hiring an agent to find a tenant, advertising, scheduling in-person visits to the property, selecting tenants, and preparing a lease. Make sure you read the property management contract carefully and understand when unique fees apply so you don't be surprised.
Property owners should approach property management as a negotiable aspect of their association with a management firm. Good property management companies have an established network of contractors and maintenance personnel with preferred pricing plans, and those savings are transferred directly to you. Understand how you will pay the administrator and set a percentage of the amount of rent or the amount due you will receive for your services. Once you've found the perfect option for managing your property, consider how else you can benefit from your experience.
There are additional fees, especially when the company charges a low monthly percentage, such as an inspection fee, an advertising fee to attract new tenants, or a fee to manage unexpected or urgent maintenance costs. Unless the landlord breaks the property management contract “for good cause”, such as if the manager fails to comply with what was agreed in the contract, the early termination of the property management agreement will generally result in a commission for early termination of the contract. It's usually a good idea for a landlord to charge the tenant a late fee if the rent isn't received on time. Some property management companies offer a fixed fee structure instead of charging a fee based on a percentage of a month's rent. These are a lot of potential rates to control, but keep in mind that most of the additional fees mentioned above refer to fairly large contracts, where the property manager takes care of all the heavy lifting to get tenants and work with them, including any collection and eviction activities that may arise, along with routine home maintenance.
Now that we've explored the factors that influence property management fees in New York and typical fee structures, it's essential to dive deeper into the challenges and benefits associated with these fees. The location of your rental property and the location of potential tenants also influence whether it's worth paying for the property manager or not. Larger property management firms may have the necessary experience to manage evictions on their own, while others will outsource the work to a local law firm that specializes in residential evictions.
