Today we are talking about how much professional property management services cost in the Charleston, North Charleston, and James Island area. 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 kinds of fees you can expect to see. 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.
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 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.
Last but not least, the property management services fee is the ongoing fee that you pay every month 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. Normally, there will even be a discount offered for the care of multiple units.
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 and then integrate them into their schedule for routine care at a discount!
Here’s an example of how property management services 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 what your first month’s property management costs will be $850 ($200 setup, $500 leasing, $150 management).
If we collect $1,500 of rent, and then 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.
After month one, your owner draw would be $1,350. That doesn’t take into consideration any emergency maintenance issues such as plumbing or electrical problems that need to be paid for. However, that’s what you’d expect to get as an owner on a monthly basis.
This is the typical cost structure for full-service property management Charleston investors need. Of course, all companies are different and offer varying levels of service, which will dictate their fees. If you have any questions, 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 is the kind of cutting-edge research that helps us price your rental property correctly and ensure you're earning maximum rent and return on investment.
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