Now that you own a property and have tenants living in it, have you given any consideration to the day-to-day responsibilities of property management? Did you know that more than half of real estate investors in the country use the services of a Property Manager? Hiring a property manager can make your life as a landlord much easier.
In order to make an informed choice, you need to know what a property manager does and how much they charge. Once you’ve finished reading this article, you’ll have a much better idea.
What Is A Property Manager?
A property manager is solely responsible for managing a rental property and the landlord’s day-to-day obligations. Essentially, if your rental property has tenants, you can hire a property manager to oversee it. Managing a rental property while working full-time is challenging. Thus, a professional property manager can alleviate a lot of stress and free up your time.
What Does A Property Manager Do?
A good property manager is always looking out for your best interests when making choices about your property and its occupants. Some of their primary responsibilities include:
● Using rental websites to advertise your home and hosting inspections
● Locating and evaluating prospective tenants and pets
● Rent collection coordination and ensuring that the correct amount is paid on time
● Creating and finalising reports on entry conditions
● Creating and guaranteeing the lease’s signature
● Taking care of all the minute details of documentation
● Managing tenant relations on a daily basis
● Regular inspections of the property
● Responding to repair and maintenance requests and coordinating tradespeople
● Tenant turnover management
What Does A Property Manager Charge?
Property managers typically charge three sorts of fees:
- Management fees: the daily management fees for the property.
- Letting fees: fees for finding a new tenant.
- Other fees: other costs include lease renewal fees, tribunal representation fees, statement fees, and more.
The management fee generally ranges from 5% to 12% of your weekly rental income. A house with a larger rental income will have a higher management fee and is charged on an ongoing basis.
The letting fee is also calculated on the basis of your rental income but is charged only if a new renter is found. It’s normally one to two weeks’ worth of rental income. Other fees can be ad hoc, depending on circumstances of the rental situation.
Taking up the obligations of property management can be stressful, time-consuming and difficult.
Contact us today to find out more about how PRD can help you manage your property and how it can be of benefit to you.