![]() If you choose to self-manage your rentals, we have a number of property management software tools and recommendations to make your job easier. This will help determine whether you should hire a property manager for your rentals or manage your property yourself. We suggest you enter your specific rental income, maintenance expenses and markups into our property management fees calculator to find out how much you should expect to pay. As a result, these fees can quickly take a large portion your cash flow and income. Property management fees are one of a landlord’s largest expenses. This would mean roughly 13-22% of your annual income goes to your property manager. In the above example, your average cost of a property manager would add up to between $2415-$3885 per year. For reference, you can also see what percentage of your total rental income your property manager charges. Your property manager’s markup on those repairs would cost you $225.Ĭhange the inputs in the property management fees calculator to see how they affect the average cost of a property manager for your property. So for our $1500/month property, you might plan for $2250 in annual maintenance costs. One common method is the “5X Rule” where annual maintenance costs average 1.5 times the monthly rental rate. There are a number of ways to budget for annual maintenance costs. This is normally a markup on repair costs of 10% or more. Property managers will usually charge a fee for managing maintenance repairs or capital improvements on your property. Using our example $1500/month rental property, the lease-up fee comes to $750-$1500. This often ranges between half month to one full month of rent. Many property managers also charge a lease-up fee whenever they find a new tenant for your rental. For a $1500/month rental, this property management fee would be between $120-$180/month. Some charge this regardless of whether your rental property is occupied or not. However, we find that property managers often charge between 8-12% of monthly rental income. The average cost of a property manager varies, depending on your location. What Is The Average Cost Of A Property Manager? Our calculator also indicates how much these fees are as a percentage of your total income. This shows how much property management fees you will pay. Finally, we multiply the property manager’s maintenance and repair markup fees by your estimated annual repairs and add them your total. We then add the lease-up fees when your property manager finds a new tenant for your rental. How Are Property Management Fees Calculated?Īnnual property management fees are calculated by multiplying your annual rent by the percentage management fee charged by property managers.
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