As a landlord, you believe that you are perfectly capable to manage your rental property. But soon you realize that it is an exhausting task that never stops – not even during the weekend or over the holidays. The alternative is hiring a principled Denver residential property management team.
But how much do you have to pay for rental management services? Won’t you lose a big part of your profits? The answer is no. Property managers typically charge three types of fees:
- Onboarding Fee
This is a one-time fee that does not exceed the range of hundreds of dollars. This fee will cover the costs of analyzing your business model, understanding your financial goals and setting up your account. Proper onboarding is essential if you want to get the right type of tenants for your rental property.
- The Management Fee
The management fee will be charged monthly and represents a small percentage of the collected monthly rent. You will pay the first management fee together with the onboarding fee after you reach an agreement with the property management company.
- Property Administration Fee
Finally, property managers will charge a moderate property administration fee, which includes lease management, maintenance and repairs and costs to advertise and perform visitations for the available units. The average annual cost is usually within the range of 1.5 times the collected monthly rent.