Typical costs of property management fees

Having a property management company on hand can be extremely useful. However, it’s vital that you only choose from high-quality companies; otherwise, things can become more difficult. In this blog, we’re letting you know the typical costs of property management fees. 

What is a property management company? 

Property management companies are businesses that take care of many aspects of a property on behalf of a landlord. Great property management companies can help landlords to save time and provide them with peace of mind. 

Usually, a property management company will be the first port of call for tenants when they have any issues or anything to discuss. When tenants want to report something, they usually contact the property manager, who will then contact the landlord. These may also be known as letting agents. We'll let you know more about letting agent fees. 

What do property managers do? 

There are so many elements that a property management company can take care of for landlords. The exact list of things that they will take care of will vary from company to company. 

Before you decide to work with a property manager, make sure that you have a good understanding of what’s involved. This can be useful if you are choosing between two or more different companies. 

Advertising 

Property management companies usually advertise the property on various platforms. They will ensure that high-quality images are available for these platforms and that engaging descriptions have been created. It’s important that they ensure all information is correct and up to date. 

Deal with property enquiries

A great property management company will also deal with all property enquiries, organise property viewings, and answer potential tenants' questions. 

Tenant checks 

Before tenants move into a property, they will need to be vetted, which can also be referred to as tenant screening. This can include tenant referencing, ensuring they meet rental cost thresholds, credit checks and more. With a great company on hand, landlords shouldn’t need to worry about this. 

A property management company will also be responsible for creating tenancy agreements. They will ensure that all of the important information is included so that you are covered in various situations. 

Collecting rental income

Once a tenant has confirmed the rental agreement meets their needs and has moved into the property, they will need to start paying rent. This is another process that landlords don’t need to be involved in if they have a property manager on hand. Managers will ensure that the rental payments are collected on time. They will chase tenants for their rental arrears if the money is not received on time. 

Your property manager will also liaise with tenants when the rental rate increases. 

Rental property inspections 

Regular inspections can help reduce the risk of issues when you have a tenanted property. This means landlords can have peace of mind that their property is being looked after, and it gives tenants the opportunity to report any issues. 

Full management service will usually include the organisation of property maintenance and repair work. 

Dealing with disputes or tenant complaints

Occasionally, there can be disputes between tenants and landlords. A property management company can act as a third party, helping to find resolutions for disputes. 

How much are property management fees? 

Property management companies may offer various packages. They may be labelled as a ‘fully managed service’ or a specific service, such as ‘rent collection’. Some of these can be a one-off fee.

Each property management cost varies a lot depending on what’s included and where they are located. Usually, you can expect to pay them a percentage of the monthly rental costs. The typical costs for property management fees are between 5% and 15% of your monthly rental income. These are sometimes known as monthly management fees, and they will be outlined in your property management agreement. 

Read about how much money you need to invest in UK property.

What are the benefits of using property management services? 

There are so many benefits of using a property management company. Here are just a few of the most significant benefits. 

• Confirmed legal compliance for your rental property
• Property management services often save time for landlords 
• Paying one management fee is more cost-effective 
• Increase in property value 
• Property managers can help you find suitable tenants and organise each tenancy agreement 
• Property managers can be used for multiple properties

We hope this blog has been helpful regarding the cost of property management. Are you looking for a property management company in Manchester? Contact us today to see how we can help. We offer a wide range of property services to help make your life easier and ensure your tenants are happy. You can count on us for dedicated property management.