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Q.

How Much are Management Fees for Rental Properties?

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Let me be honest I didn’t know what a property manager was, so I never bothered to look into it until I needed one. I learned about property management from a friend as he suggested that I get one for my house in Pune. He suggested that I should choose NoBroker as they are best when it comes to property management. After this, I asked him about the rental property management charges. 

What is the Property Management Fee for Rental House?

My friend told me that the average property management fee is around 8% to 12% of the monthly rent. This rental property management rates covers services like tenant selection, lease enforcement, upkeep, repairs, and rent collection, and so on. Following that, he told me about the steps that I needed to follow to opt for NoBroker’s property management services, 

  • Visit the

    NoBroker’s Property Management Portal

  • Next, to get in touch with the property management expert, I was asked to fill out the form and enter details like my name, phone number, email ID, confirming whether I am the owner or not and that’s it. 

The rest would be taken care of by them, which includes getting verified tenants, on time rent collection, periodic home maintenance, and free rent agreement. Knowing that the process is streamlined, I am now planning to get in touch with NoBroker and opt for their service. 

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Why Hire A Property Management Company?

1 2023-03-05T20:03:41+00:00

Maintaining property without being at that place is very difficult. We have a property in Mumbai, but we all live in Bangalore. My parents used to go to Mumbai every two months to check out the property and collect the rent. But we realised that, in the long run, it was not possible. We, therefore, opted for a property management service. Many of you, without knowing exactly how much are management fees for rental properties, believe they are costly, but NO. The cost my parents spent on flight tickets was more. So let me share what is the average property management fee for rental properties. I will also share here some well-known property management services you can opt for.

Get on-time rent and periodic home maintenance done at an affordable price by availing NoBroker’s Property Management service

  What is the cost of a property management service?

The average management fee for rental property remains between 8% to 12% of the monthly rent collected. For example, if the rent is Rs 30,000, the property management service will charge between Rs 2,400 and Rs 3,600.  Isn’t this cheap?

  On what factors does the property management fee vary?

A property management company can charge you an amount apart from the monthly fee. Here are some aspects for which they levy charges-

Setup fee-

this is a one-time fee that you will need to pay when you first hire them. The company does the inspection of the property, lays out plans for how things are going to be worked out, and more at this stage.

Maintenance fee-

management fees for the property are to be paid separately. It is usually within 1.5% of the monthly rent. In the case of any renovation, installation, or more, this fee helps the company complete the work on the property.

Vacancy fee-

this fee is charged by the property management company to re-lease the property after it becomes vacant. This is usually the month’s rent or some percentage stated in the agreement.

Lease renewal fee-

the property management company charges this fee for handling the renewal of a tenant’s lease after the stipulated time.

Other fees that also get charged are- eviction fees, early termination fees, and more.

Some property management companies you can opt for are- 

  • NoBroker

  • DLF Ltd.

  • Elara Technologies Pte Ltd

  • Godrej Industries Ltd

  • Ajmera Realty & Infra India Ltd

  • Assetz Property Services Pvt. Ltd.

  • Cushman & Wakefield etc

I hope this answers how much are management fees for rental properties.

  Read More:

What is property management?

How do I terminate a property management agreement?

How to Choose a property management Company?

What Do property management Companies Do?

How to approach property management companies?

 

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