Key Takeaways
Professional property management brings expertise and efficiency. A skilled property manager handles everything from rent collection to lease enforcement, ensuring your rental property runs smoothly and profitably.
Advertising and resident selection are crucial for success. Property managers attract a wide pool of prospective residents and meticulously screen applicants to find reliable tenants who pay rent on time and care for the property.
Setting the right rent is key to maximizing ROI. Property managers use their market knowledge to determine the optimal rent amount, ensuring it’s competitive and aligned with your investment goals.
Professional management is an investment in peace of mind. By staying updated on laws, maintaining strong resident relationships, and handling maintenance efficiently, property managers help you enjoy the benefits of ownership.
Congratulations on owning a rental property! However, becoming a landlord is only one half of the equation. The other half is getting the management right.
To successfully manage a rental property, you’ll need to get certain things right. You’ll need to advertise the property thoroughly.
Screen prospective residents meticulously. Determine the right rent amount. Be a proactive, foresighted, and superb communicator.
And even more importantly, familiarize yourself with the state and local landlord-tenant laws. But there are a ton and they keep changing over time! That’s why savvy rental property owners turn to professionals for help.
A property manager has the skills and talent to handle all aspects of landlording. However, there is a cost that comes with hiring one.
And this now brings us to today’s question – how much does property management cost? If you’ve been asking yourself this question, this blog by Rentifi Property Management has you covered!
Here’s what to know about the costs that go into determining the total property management cost.
What Fees Go Into Calculating a Property Management Cost?
Initial Setup Fee
This fee is used to establish a relationship with the property manager. It helps set up an account with them and may require you to provide certain paperwork for processing.
Some of the things you may need to provide the property manager include the following.
Proof of ownership.
Property details, including address, square footage, and the number of bedrooms and bathrooms.
Financial documents, such as mortgage information, insurance policies, and tax documents.
Current lease agreements (if any).
Property Management Fee
This fee forms the bulk of the property management fee you’ll be paying to your property manager. And understandably so, this is what comprises most of the services you’ll be getting from the property manager.
In turn, you can expect the property manager to help you with the following responsibilities.
Collecting rent every month and crediting the amount to your account.
Handling needed or requested repairs and maintenance.
Drafting the lease agreement per the applicable federal, state, and local laws. They will also be responsible for enforcing its terms on the resident. For example, charging fees for any rent paid late.
Inspecting the rental unit per the terms of the lease agreement.
Communicating with residents about important issues.
Determining the optimal rent amount to charge residents.
Other Property Management Services
Rental Advertising
This is another service that you can expect to get from your property manager. After the unit becomes vacant, the property manager will advertise the unit to ensure the vacancy period remains as minimal as possible.
Now, advertising a rental unit is a multi-step process. It usually involves the following.
Drafting a rental ad. The ad contains high-quality photos, an interesting headline, and a detailed summary description section.
Listing on the top rental listing websites. They will also usually expand the scope to include advertising on social media, community bulletin boards, and even local dailies.
These efforts should help attract a large prospective resident pool.
Resident Selection
For optimal ROI, renting to a responsible resident is key. And your dedicated property manager can help you in this regard as well. They will narrow down the potential pool by meticulously screening all interested applicants.
The goal of the screening process should be to find a high-quality resident who will pay rent on time, care for their rented premises, and notify us of issues promptly.
Rental Rate
Charging the right rent amount is key to running a successful rental investment. The goal is to ensure the rent amount you’re charging is neither too high nor too low; it should be the goldilocks amount.
Property managers have the market knowledge and the right tools to ensure you charge the right rent for optimal ROI.
The Value of Professional Management
Choosing professional management for your rental property is an investment in both your time and your peace of mind.
A skilled property manager brings expertise that goes beyond just handling day-to-day tasks.
They offer a strategic approach to maximizing your property’s potential, ensuring that every decision aligns with your long-term goals.
From setting competitive rental rates to maintaining strong resident relationships, their knowledge helps create a stable and profitable rental experience.
Professional managers like those at Rentifi Property Management also stay updated on ever-changing laws and regulations, ensuring your property remains compliant.
This proactive approach helps avoid potential pitfalls and keeps your investment secure.
Additionally, their network of trusted vendors and contractors means that maintenance and repairs are handled efficiently, minimizing disruptions for both you and your residents.
Perhaps most importantly, professional management allows you to enjoy the benefits of property ownership without the hands-on oversight.
Whether you’re a seasoned investor or new to the rental market, partnering with a property manager means you can focus on what matters most: growing your portfolio and achieving your financial objectives.
Conclusion
While this list is certainly not exhaustive, it has hopefully helped clear up some confusion on what goes into calculating a property management cost.
Rentifi Property Management provides personalized property management services to rental property owners in Fort Myers and throughout Southwest Florida.
We have over 90 years of combined property management experience. Get in touch to learn how we can help you succeed as a landlord!
