If you have a property that you want to rent out, it can be a huge hassle. Sometimes, dealing with rental applications, maintenance and problem tenants make it seem like it is not even worth the rental income that you are generating. This is especially true if your rental property is not close to your primary residence. If this sounds like you, a property management company can be the answer to your prayers. These companies handle all of those problems and more for a small fee. However, it can be confusing to hire a property management company because the fees quoted from one company to the next can vary so wildly. We will review some of the common fees that are charged and their typical rates.

Almost every property management company will charge a commission fee. This is basically their fee for managing your property. Some property managers will charge a flat rate that is anywhere between $%0 and $200 per month. However, it is a lot more common to charge a percentage of the rent. The standard percentage charged is usually between 3% and 15% of the rent. Most property management companies will also charge a set-up fee for each new tenant. This is related to the time and money that has to be spent showing the property to potential tenants and setting up accounts, etc. once the new tenants have been identified. The amount of this fee can be up to the amount of one month’s rent. Once a new tenant is identified and moved in, this fee will no longer be charged.

Some property management companies also charge an extra fee whenever a lease agreement is updated with a current tenant. A ballpark fee for this activity is around $200. The fee is used to cover the costs of the paperwork that must be completed and filed as well as the communication that must take place with the current tenant.

There are always advertising costs when the property management company is actively looking for new tenants. How these costs are handled will depend upon the individual company you are working with. Some companies use a higher lease set up fee instead of charging you for advertising costs. Other companies split the advertising fees with you. It is important to have a clear understanding of how the advertising will be handled. You do not want to lose out on rental income month after month because your property management company does not do enough advertising. On the other hand, you do not want to have to pay huge advertising fees if the property should be relatively easy to rent.

Maintenance mark-up fees is something else that will likely be charged by your property management company. These are fees above the cost of maintenance work. For example, if the management company has to call a plumber, they will also have to be available when the plumber comes to fix the problem. If the maintenance fee charged by your property management company is 10%, it means your total cost for the repair will be the bill from the plumber, plus 105 for the company who manages the property for you.

Penny Lane recently met with an expert in property management Providence area to help her find office space in the area. She hired a Providence property management to find tenants for her office building.

For more information about property management go to
http://www.realpropertyprovidence.com/ .

Author Bio: Penny Lane recently met with an expert in property management Providence area to help her find office space in the area. She hired a Providence property management to find tenants for her office building.

Category: Business
Keywords: property management Providence,Providence property management