What Does Rental Management Cost?
The fees for rental management can vary significantly depending on the services provided, the terms of the contract, and the number of rental units that are managed, but they typically consist of a small percentage of the monthly rental income plus a one-time fee every time a rental unit is filled, typically equivalent to a month’s rental income for the unit. There are many things that can affect the cost of rental management, including:
A rental management company can provide a small, limited number of services for a property owner, such as tenant screening and advertising only, or they can handle most day-to-day operations, including property maintenance, accounting, tenant relations, and vendor scheduling. Those who wish to take a hands-off, investment-only approach may often find the fees well worth the results. By entrusting most services to a rental management company, property owners can enjoy:
- Fewer vacancies due to professional advertising, tenant screening, and placement services
- Greater profits due to higher rates of occupancy
- Improved tenant satisfaction with professional tenant relations
Choosing a single rental management company for all services can reduce costs, and many of the fees can be offset through higher profits and occupancy rates. Services that are typically offered include:
- Advertising vacancies, screening tenants, and filling rental units
- Drafting and processing rental applications, leases, and other documents
- Collecting rent, security deposits, and other fees
- Managing accounts payable
- Bookkeeping and accounting
- Managing vendors and contractors
- Property inspections, maintenance, and repairs
- Tenant relations
- And more!
Local Market Prices
The cost of rental management varies greatly according to the rental fees that can be generated in a particular market. In areas where rental fees are typically low, rental management may be a less attractive option, but in markets that can command higher prices, the cost for management services can easily be incorporated into the monthly rental fee. However, because of the reduced costs associated with competent management services, increased property values, and higher occupancy, rental management can be attractive even in markets with slim profits.
Number of Rental Units
A property owner may be able to manage a few rental units if he’s not bothered by the time and energy involved, but as the number of units increases, the time and effort required may pose a challenge, especially if the units are in multiple locations. For property owners with multiple properties and rental units—although single-property owners can also benefit—a rental management company can be an extremely cost-effective option that reduces workload and increases profit.
Rental management Services in Maryland
To learn more about the costs of rental management, its benefits, and the services included, talk to our team at Tidewater Rental management today. We are a full-service rental management company that serves the Maryland area. We offer a variety of services, including rental management, association management, real estate sales, maintenance services, and more. We have decades of experience in the real estate market and a dedicated team that can handle all your rental management needs.