How Much Does Property Management Really Cost?

At Robert C. White & Company we value transparency in pricing. So here, we do our best to outline the costs and fees associated with hiring a professional property manager. You probably know already that property managers take a monthly percentage of the rent, but what other costs could you anticipate? Leasing and reporting fees are similar across the board, but which add-ons and optional services may you also want to feel secure? All this and more, answered!

Most property management companies, like Robert C. White & Company, offer a free property assessment and market analysis on your rental property. A licensed real estate agent can give you a suggested market rent for your property and evaluate maintenance/updates needed to be rent ready and get you the highest rental rate!

Like most service businesses, if you decide to move forward, you can expect an initial set-up fee. For property management companies this tends to be in the range of $100-200. This fee supports the initial work done to add you as a client, move your property into the system, conduct a takeover inspection, and set-up current tenants if appropriate. 

100% of one month’s rent is the typical leasing fee. Leasing fees are only incurred once per tenancy, even if a group renews. If a tenant does choose to renew, you can expect your property manager to charge a separate renewal fee. Actively working to get leases renewed is an important way to reduce vacancy rates, keep turnover expenses low, and increase overall profitability. At Robert C. White and Company, we charge a flat lease renewal fee of $499. 

A professional property manager will typically take between 8 and 12% of the rental rate per the lease. For example, if rent was set at $2000 with a 10% fee, the management cost would be $200/month. At Robert C. White & Company, like with most property managers, there are also different tiers to choose from that will include added services and owner protections. Our fees here range from 10 and 14 percent of the monthly rent. 

And what might you get for choosing a more expensive property manager or level of service? I can tell you that with our top tier package, appropriately named total assurance, owners get some awesome perks! They would receive increased pet damage protection, increased eviction protections, and guarantees against rent loss.

Note, the services listed in this section are not offered by all property management companies. However, the best of the bunch will have options like this that improve owner experience and can bring peace of mind! 

Property Inspection Fee = $100-200/Inspection

Evictions Administration = $100-200

Bill Pay Service = $10-20/month

Insurance Claim Oversight = 8-12% of the claim

Owner Fast Pay = $25/month

Yearly Financial Report = $100-200/Report

Understanding the expected costs of professional property management is crucial. As a buyer, you’re now armed with information and expectations and are ready to evaluate the different services and offerings from property managers near you!

Don’t forget to download Robert C. White’s & Company's Detailed Pricing Packet --> HERE

Have More Questions About Property Management Pricing? 

Contact Us Today

860-613-6290 OR info@robertcwhite.com