As a landlord in Pennsylvania, understanding the costs associated with hiring a property management company is crucial. Property managers can save you time and effort, but they come with fees that vary based on several factors. In this blog, we'll explore how much property managers typically charge in Pennsylvania, what services are included, and how to evaluate if these fees align with your needs and budget.
Understanding Property Management Fees
Property management fees can be broken down into several categories:
- Monthly Management Fees
- Tenant Placement Fees
- Maintenance Fees
- Lease Renewal Fees
- Eviction Fees
Let's take a look at each of these categories.
Monthly Management Fees
The monthly management fee is the most common charge you'll encounter. This fee typically ranges from 8% to 12% of the monthly rent collected. The percentage may vary based on factors such as the property type, location, and the services included. For example, a property management company in Philadelphia might charge a different rate compared to one in a rural area of Pennsylvania.
What's Included?
Monthly management fees generally cover:
- Rent collection
- Handling tenant complaints and requests
- Coordination of maintenance and repairs
- Property inspections
- Financial reporting
Tenant Placement Fees
Tenant placement fees, also known as leasing fees, are charged when the property management company finds a new tenant for your rental property. This fee usually ranges from 50% to 100% of one month's rent. Some companies might charge a flat fee instead.
What's Included?
Tenant placement fees typically cover:
- Marketing the property
- Conducting showings
- Screening tenants (background checks, credit checks, etc.)
- Preparing the lease agreement
Maintenance Fees
Maintenance fees can be charged in different ways. Some property management companies handle minor maintenance tasks in advance, and then deduct the expense from the monthly rent, while others might charge you separately. It's essential to understand how maintenance is billed to avoid unexpected costs.
