The cost of property management differs greatly depending on location, property type and management company. For most companies, the management fees consist of a percentage of the rent on occupied units (anywhere from 6-12% in general), and additional fees for advertising and leasing services. However, some companies opt to charge flat monthly fees and itemize more specific costs in their management agreements.
It"s always important to read your management contract carefully when negotiating with a management company and ask questions about unusual fees. If a company is charging commissions on vacant units or marking up repair costs beyond reasonable levels, it might be a sign that the company is not as experienced or successful as you would like. Don"t be afraid to look for other management candidates to compare fee structures, or reject a company on the basis of their management contract.
Overall, the benefits of employing a professional property manager far outweigh the average property management cost for a property or portfolio. A professional manager can generally lower operating costs while maximizing occupancy and revenue, making their services well worth the price.