What are the customary Management fees charged by a Property Management Company for a Residential Property?
There is a significant difference between commercial vs residential property management fees.
In the case of Residential Properties, Management Companies are mostly paid based on a percentage of the gross income received from tenants. The average management fee ranges between 8-15% of the monthly rent.
With our company you might expect to pay 10% in rental property management fees for a single family home.
This fee may vary based on the number of properties you need managed, the number of units in each property, the location and condition of the property, and most importantly, what services are included for that fee.
Management fees vary from one company to another. One common mistake made by some clients is the failure to identify all the potential fees for property management, as well as not making a true ‘apples-to-apples’ comparison of costs between property management companies. A lower management fee could easily be wiped out by a lot of expensive back-end charges and vice versa. In few words, these companies will offer you a very low management fee, which it will most likely make you contract with them, but then, they will charge you extra for services normally included in a company with a higher management fee.