Owning rental property or properties in Maryland has many benefits, but it’s not always easy to manage or maintain the rental property. It is good to hire property management company in Maryland to manage your property. They will not only keep your rental maintained but will manage other things as well like finding quality tenants, setting the rental rate, making lease agreement, handle tenant’s complaints, etc. But, you should know that they will provide such assistance at a certain price. They will not do it for free. So, you need to know whether or not you can afford property management service in Maryland.
Property management company appoint the property manager to look after your rental property. The manager will handle everything to manage and keep your property well-maintained. Also they advertise your property in order to hire quality tenants. All these things require lots of time and efforts. And this is the reason why often property management companies higher fees or price.
Hiring property management company in Maryland is actually very beneficial, but not every homeowners can afford them. To check whether you can afford property management service in Maryland or not, then keep on reading the article.
Can you afford property management services?
Before hiring professional property management company in Maryland, people consider their budget and property management service fees. Because, usually the company charges high prices for managing rental property. But, they do it because they handle each and everything to maintain your property from finding quality tenants to preparing the lease agreement and keeping the property well-maintained. Such wonderful partnership comes at a price. But, they charge you a genuine price considering all the important things. It is quite difficult to tell you the exact price or charges of property management in Maryland to help you to know whether or not you can afford them.
How Much a Property Management Company Can Cost
Most property management companies charge 10% on the total monthly rent collected from the tenants, excluding all the repair and maintenance costs. Well there are many things for which property management company can charge fees. Some companies will charge a lot of fees, some might charge only for one service. But, their total charges or fees depending on how many fees they charge. If you are trying to figure out how much fees property management company charge then this article will help you to know the types of the fees they include.
Also you would like to know that what services you will be getting for your money. While browsing property management companies’ website, you will find a page that educates you about the services offered by the rental management company and also the costs.
Let’s see the type of fees you will be charged by the property management companies in Maryland: –
This is the basic fee that every property manager charges for their monthly services. They will charge you a flat percentage for this fee. Most of the companies charge 8-10% of the collected monthly rent. For example- if the monthly rent is $3000 then you property manager can cost in between $210-$300. The services that are provided by the management companies for management fees may vary from company to company. But, the typical services include the following: –
- Monthly property accounting
- Property evaluation
- 24/7 Maintenance
- 24/7 customer service
- Onsite visits for emergent situations
- Year-end statements
- Copies of all invoices and work orders
- Before and after photos of repairs
- Communication with tenants
Another common fee property management companies charge is the leasing fee. The way the management fees is charged for managing the property just like that leasing fee covers the preparation, marketing and leasing of the property. When you will hire a property management company in Maryland they will have a walk-through of your home. Then they can suggest you what things you need to change or repair to improve your property.
When you will make the necessary improvements in your rental property, then they will take the pictures and videos of your home to prepare for marketing and advertising. A good property management company use the best online portals, social media platforms as well as own website to market your rental property.
When the tenants will start applying for renting the property, then the property manager will be responsible for tenant screening and selection. So, this fee is due once the property is rented. But, if the company charges a fee upfront then it is a bad sign. Because in property management industry it is common to charge once the service has been provided.
Usually property management companies only charge the maintenance fees. But, apart from this there are many other expenses for which they may charge you extra for ex- the eviction fees. Means the company can charge you extra for evicting a tenant from the property.
TOTAL COST OF PROPERTY MANAGEMENT
So, now you can know the total amount you will have to pay to a property management company in Maryland. So, the total cost or property management fees will be approx. $1,800 – $2,500 per year.
Even if you think this is too costly for you as you have just entered in the business then also you should keep in mind that while spending money on property management, you can have a lot of time for your personal work. You will not be called 24/7 for solving tenant’s problems also you will can have more time for doing the things you love.
You may have a full-time job in Maryland so, managing a rental property at such situation can be really challenging for you, especially if you have kids. Hiring a professional property manager or property management company in Maryland can give you back some time while also managing your rental unit effectively and efficiently.
Hope this has cleared up some of the confusion regarding property management costs. While the cost of property management depends on the number of properties in Maryland you want to manage, you can expect to spend close to $2,000 per year.