How Much Do Charleston Property Managers Cost?

February 07, 2023 | By Charleston Property Company
house-and-money

Updated February 7, 2023

Today we are talking about how much professional property management services cost in the Charleston, North Charleston, and James Island areas. These expenses are pretty simple to understand, and they break down into three fairly common fee categories that you will find with most property management companies in our rental market.

As a rental property owner in the Charleston rental market who might be interested in working with full-service property management, here are the fees you can expect to see when working with a property management company Charleston, SC, property owners can trust.

The percentages may deviate slightly from company to company, but as a general overview, this should give you a pretty good idea of how to budget for property management services.

1. The Set-Up Fee

Many Charleston property managers ask for a set-up fee to cover the onboarding process for a property owner and their rental homes.

This is a crucial process where Charleston property managers log important details into their systems, including opening up an online portal for the owners and connecting back accounts for direct deposits.

The fee covers the overall costs of getting the property owner ready with effective property management services. These fees can range between $100 and $500, and it's almost always a one-time cost. When looking for a property manager that's the right fit for your rental properties, ask about set-up fees and what's included in those costs.

2. The Leasing Fee

The leasing fee is also a one-time cost designed to cover everything that's involved in getting a rental property rented quickly with a high-quality tenant.

This fee typically includes the following:

  • Taking excellent photos of your single-family homes or multi-family units

  • Posting the property to multiple online rental listing sites to attract the right renters

  • Showing the property until it is rented and providing a thorough tenant screening process.

The standard range for this fee is usually between 10 percent and 100 percent of one month's rent. Considering the costs inherent to turnover and the extended cost of a long-term vacancy, this fee often saves property owners money in the long run.

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3. The Monthly Management Fee

Last but not least, the property management services fee is the ongoing fee you pay monthly for Charleston property managers to take care of every detail of your rental property's daily operations. It's almost always a percentage of the rent that's collected.

The range is usually between seven and 20 percent of the monthly rent, based on the type of property you have (whether it's a single-family home or a duplex, condo, or other property types) and whether it's a long-term rental or a vacation property. Often, a property management company will offer a discount for the care of multiple units in your portfolio.

If you intend to grow your portfolio under the expert care of full-service property management, this can present itself as a value-add opportunity for investors. Your property manager can help you research new properties to add to your holdings, then integrate them into their schedule for routine care at a discount!

What Do the Numbers Look Like for a Typical Fee Structure?

Here's an example of how property management services and a fee structure work for investors.

  • Let's say your property rents for $1,500 per month. The first thing you'll pay is the owner's set-up fee in month one. As an average, let's say that's $200.

  • Once tenant placement is successful, you will incur a leasing fee—which, for purposes of this example, might be 30 percent ($500).

  • If the management fee is 10 percent ($150), you can do the math and see that your first month's property management costs will be $850 ($200 set-up, $500 leasing, $150 management).

If the monthly rent amount is $1,500, and we subtract $850 in property management fees, the owner draw for the first month is $650. That's month one.

After that, there will be no more set-up fees or leasing fees. You just have to pay the $150 management fee each month. Some companies also charge a tenant placement fee when placing a new tenant in a property.

Therefore, after month one, your owner draw would be $1,350. However, that doesn't consider any emergency maintenance issues, such as plumbing or electrical problems that could incur costs.

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How to Know If You're Getting What You Pay For

How can property owners know they're getting their money's worth when paying monthly management fees? Excellent property management in Charleston requires more than simply collecting rent and making sure owners get paid.

When properties fall into disrepair or the rent is too high (or too low), rental property owners lose money. So while you pay only a percentage of the monthly rent as your property management fees, you still need to trust that your property managers are doing everything they can to maximize your returns.

We start with a rental analysis to help us determine the best rental amount for each property in your portfolio. Yes, every property is different, and the best local property managers know that careful analysis is the best way to set an appropriate rent amount that attracts quality renters and generates the revenue owners need for success!

Getting your money's worth also means that tenants are happy and receive the best services in the area to make their stay more comfortable. This includes delivering excellent maintenance services, being responsive to tenant requests, and ensuring your Charleston rental properties are safe and attractive to residents long-term.

The Best Property Management Charleston, SC, Offers Is Worth It

The typical cost structure for the best Charleston property management services is worth every penny! Of course, all companies are different and offer varying levels of service, which will dictate their fees. However, your bottom line should improve if you are getting the best services (no matter what you pay in monthly fees).

If you have any questions about the cost of property management or the services you should expect from experts, please contact us at Charleston Property Company! We're happy to answer real estate investment queries for property owners in the Charleston area. We also serve investors looking to acquire rental properties in our rental market long-distance.

A great way to get started with our services is to ask for our Free Rental Analysis! This kind of cutting-edge research helps us price your rental property correctly and ensure you're earning maximum rent and return on investment.

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