Whether you are thinking about buying a rental property or already own one and are tired of the ins and outs of managing it, we completely understand if you are considering hiring a short-term property manager and wondering how much this could cost. These professionals can make life much easier as they handle all of your day-to-day tasks related to the property.
Short-term property managers often charge around 10 percent of the monthly rental cost on a single-family property. However, this rate can vary based on the size of the property and number of units, and can also be impacted by miscellaneous fees related to the hiring process.
Hiring a short-term property manager certainly has its benefits, even if it does come at a cost. Keep reading to learn more about the typical fees associated with a short-term property manager and how you can decide if this is the right fit for your property.
What is the Cost for a Short-Term Property Manager?
Even if you are new to the rental property world, you have likely heard of property managers. These professionals oversee all of the details associated with owning rental properties, such as the following tasks:
- Managing maintenance requests
- Collecting rent
- Signing new leasers
- Other budgetary responsibilities
If you are the property owner, a good property manager can help make your life so much easier. However, there are some costs associated with hiring a short-term property manager. The following sections will discuss how much you can typically expect to spend on this service.
A property manager often expects to receive a monthly cut of the property’s income. In general, property managers will ask for around 10 percent of the rental cost on a single-unit property. However, for multi-unit properties, the scale may vary.
If your property management company is a large firm, they may charge you an inclusive fee based on the size of your property, or offer a bundle of services for a fixed monthly rate that you may have to pay extra if additional needs arise.
Keep in mind that a property manager will often charge you for gross monthly rental income. This means that their salary will be calculated based on the overall rent you collect before any expenses are deducted. Though this may seem like a small distinction, it can certainly add up if you are expecting to pay a certain amount and find your first bill is much higher than you thought.
If your property management company is large enough, they probably have their own maintenance team. Though this makes things easier for guaranteeing quick repairs for your tenants, it means that you will likely have to pay an additional fee to support labor. Your short-term property manager may pass you the monthly maintenance bill with labor charges added to support the salaries of the maintenance professionals.
Other Common Miscellaneous Fees
You should not expect to pay only the monthly rental price to your property manager. Many other needs can arise that will result in extra costs to you. Here is what you can typically expect to pay in terms of extra fees:
- Advance fees: When you hire a short-term property manager, they may wish to receive one month’s payment upfront or charge you some type of set-up fee. If you have a new rental property, your property manager may wish to inspect the place and make sure everything is ready for tenants, making repairs as needed.
- Leasing fees: When a unit or units become vacant, your property manager can take the responsibility of filling it. While this is a positive thing, they can charge you for the advertising materials necessary and any staff it requires to show the property.
- Eviction fees: If a tenant does not meet his or her payments, they will need to be evicted. This is not as simple as putting a sign on a door, and your property manager will need to navigate the legal process, which they will most likely charge you for.
Although the above fees are the most common, other things can certainly arise. If you are considering hiring a short-term property manager, it is best to have a thorough talk with the company or individual to make sure you know what fees you will be paying when you sign a contract.
When to Hire a Short-Term Property Manager
In general, you should hire a short-term property manager if you feel that you would like help with your rental property in any way. Although a property manager can be a great fit for any property owner, it is especially popular with these conditions:
- New or first-time property owners
- Multi-property owners
- Those with a complex rental property
- Those who live far away from the property
Hiring a short-term property manager is very common and can make your life a lot easier. When you are considering hiring one, it is best to talk to them about how they can help you meet the needs of your specific property and what the associated costs will be to do so.
Owning and renting properties can be a wonderful investment, but we know that it can also quickly become a large task. Sometimes the best thing to do is hire a property manager if you are considering buying a property or find yourself tired of the day-to-day busyness associated with rental property ownership.
A short-term property manager will typically charge you a certain percentage of gross income, plus some added fees. There is also the potential for more fees based on your properties’ needs regarding maintenance and eviction. To best budget for these fees, it is best to get a quote from a short-term property manager before you decide to hire them.
Once you have a great short-term property manager working for you, you will soon realize how much easier your life is as a property owner. With all the details taken care of, you can focus on your other priorities knowing that your property is in good hands.
Persinger Group Recommends Evolve
Managing your vacation rental takes a specific skill set, that's why we recommend Evolve.