In general, hiring a property management company is more economical than most people expect, especially when you consider what you get in return---money coming in each month in the form of rent checks, without the time commitment of managing a property.
What you'll pay your property manager will vary depending on what services you require, the type of property you own, and where your property is located, but here are some standard fee structures:
- Percentage of monthly rent: If you choose to employ a property management company on a full-service basis, you'll most likely be charged a percentage of the monthly rent on your property. This can range anywhere from 5-15%, with 8-10% being common. Under this fee structure, if your unit isn't rented, you don't pay.
- Flat-fee: For larger buildings, property managers often charge a flat fee per month, regardless of how many units are rented at any given time. Property managers typically work on a flat-fee basis when they expect managing your building to require a significant percentage of their company's time and resources.
- Project-based: When you employ a property manager for selected services only, project-based fees are common. For example, if you hire a property management company to fill a vacant property, you might be charged the equivalent of one month's rent for the privilege.