First, it’s important to know what a property manager does and how they can benefit you as a landlord! A property manager and/or management company can assist landlords with all aspects of managing their properties. A property management company will not only help you maintain your properties but assists with leasing, rent collection, marketing, financials, and more. Any new landlord, someone with many properties or landlords that feel in over their heads should consider hiring a property management company.
The biggest thing landlords might consider before hiring a company to help is what will it cost and will the cost increase revenue? Read on to learn more about how much Baltimore property managers charge!
How do Baltimore Property Managers Charge and What Does It Cover?
Property management company fees typically, property management companies average around 10% of your monthly income as their main fee. However, for multiple properties and/or Multifamily properties, companies tend to charge anywhere between 4-7%.
Example of Property Management Charges
- Single property: If you have one property with a rent of $2000/month, 10% of that is $200. This would be the income fee that a property management company would take.
- Multiple Units/Properties: If you hire a company for multiple properties fees may be lower. If the collected rent of all units is $10,000 a month and the management company takes 4% (the lower percentage a company may take), $400 is the monthly fee. On the other end of the spectrum, if they take 7% on the higher end of the spectrum, your fee would be $700 a month as their fee.
Typical Additional Fees
In addition to their monthly income fee, they will likely charge additional fees for services not covered under your monthly management fees. Assuming they are successful these fees will be made up for and then some, not being a big deal at the end of the day.
- Set-up fee: A set-up fee is generally charged to get all the materials and documents set up for your property. Generally, that fee will be around $300 or less according to RoofStocks. This is a pretty reasonable fee for what will come from it!
- Maintenance fees: A property management company may also take maintenance fees for maintaining your property. According to All Property Managers, this fee could cost anywhere between $25-45 per worker plus materials for projects. This is negotiated ahead of time and built into your contract, so no need to worry about hidden maintenance costs after the fact.
- Leasing and Renewal Fees, Etc.: Leasing fees, renewal fees, and eviction fees will likely be charged as well. Although evictions will be less common with a property management company in charge, they still happen. With that said, the fee is typically between $200 and $500 per occupant and any court/lawyer fees. Leasing fees and renewal fees are generally small and equal to a month’s rent.
Some other fees that might be built into the contract include vacancy, late payment, and tenant placement fees. Learn more about the cost of property managers and associated fees here.
Is it Worth it to Hire a Property Management Company?
Absolutely! If you can work it into your budget as a landlord, we highly recommend it. Being a landlord isn’t easy and when you consider all the extra work like leasing, collecting rent, and evictions, it becomes a time-consuming job with legal complications if done incorrectly.
If you can budget for a property management company, the cost will quickly be made up for if their services are successful. A property management company will fill vacancies, help keep properties well maintained, and make sure rent is collected on time. All those things will increase monthly income without you having to do any of the complicated work!
Hire Bay Property Management Group of Baltimore to help with your property management needs! We are a company with a great reputation and some of the lowest eviction rates in the industry. Reach out to learn more about our Baltimore property management services and pricing.