Rental management companies offer a wide array of services to help landlords manage their rental properties efficiently. Rental property managers are professionals who can take care of all aspects related to the property, from tenant selection and screening to rent collection, maintenance, and even evictions if necessary. Rental management fees vary depending on the services required, however, the cost may be well worth it for those who want a stress-free rental experience.
Rental Management Fees
Most rental property managers charge a fee based on the size and number of units in the management portfolio. The typical rate is between 7-15% of the monthly rent collected from tenants. Along with these fees, some companies also charge additional setup charges when they first start managing a new property, and they charge a separate fee for placing a new tenant, usually between 50-100% of a month's rent. Most companies also charge a lease renewal fee, although it is typically much lower than the fee to place a brand-new tenant.
Revolution's typical management fee is 7% of the rent, with 75% of the first full month's rent going towards the tenant placement fee. A lease renewal fee of $250 is charged upon lease renewal each year.
Main Responsibilities of a Rental Management Company
The main responsibilities of a rental management company are to screen tenants, collect rent, ensure the property is well-maintained, and handle any tenant-related issues that arise. Rental managers also take care of advertising vacant units and conducting regular inspections to ensure that the property is kept in good condition. They can also assist with any legal matters that may arise during the rental process such as evictions or lease violations.
Do Rental Management Companies Handle Evictions?
Most rental management companies have experience with tenant eviction proceedings and will be able to help you if this type of situation arises. Some rental managers charge an additional fee for eviction services, so you should check with your rental management company for specific details. Revolution includes this service in most of our pricing plans at no additional cost to the landlord. We also use highly experienced landlord/tenant attorneys to handle all eviction matters.
Do Rental Property Managers need to be licensed?
The requirements for licensing vary from state to state, but in most cases, rental property managers are required to obtain a license before they can legally manage properties in their given state. Check with your local government to find out what the specific requirements are for rental management companies in your area. In the states where Revolution does business, licensing is always required, and Revolution has been licensed as a real estate brokerage since 2008.
How Do Rental Property Managers Handle Maintenance and Repairs?
Rental managers usually have access to contacts and resources that allow them to facilitate any maintenance or repairs needed on the property quickly and efficiently. Rental managers may also work with tenants on any repair issues that come up during the lease term and provide guidance if necessary.
Generally, the landlord is responsible for fixing anything that breaks in the property, unless the damage is the result of tenant negligence. For example, if a garbage disposal just stops working, that would be the landlord's responsibility to pay for it. However, if the tenant jammed a knife in the disposal, then it would be their responsibility to pay for it. It is generally illegal to make tenants responsible for repairs on a property they are renting, even if your lease says so.
Should I Manage My Rental Property or Hire a Management Company? How Hard Could It Be?
Managing your own rental property can be time-consuming and challenging, and it is rarely a worthwhile endeavor because your time is better spent on sourcing new deals to get more properties rather than wasting time managing existing properties. Rental management companies can offer landlords a great deal of support and resources that make managing a rental property much easier. If you’re considering hiring a rental management company, make sure to research the different options available to find one that is best suited for your needs.
Rental management companies provide landlords with valuable support in managing their rentals efficiently and profitably. Rental managers are experienced professionals who understand the complexities of renting out property and can help take care of many of the tedious tasks associated with rental property management. Rental managers can make life much easier for landlords and are a valuable asset in any real estate business. If you’re interested in learning more about how a rental management company can help you, please contact Revolution Rental Management today! We have years of experience helping landlords maximize their returns on investment and manage their properties effectively.
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