How Much does a Property Manager Cost?

Hello Yamini, I recently availed a property management service and would like to help you by sharing how much does a property manager cost. From what I have observed in Bangalore, property managers charge between 6 to 12 percent of the monthly rent which your house earns. This is one model, but different property management companies follow different types of plans for the monetary part. Let me describe this below to explain everything in a better manner.

How much do Property Managers Charge?

Property management companies have various ways through which they determine the service charges. They are as follows:

Plan Model

Here, companies set up different plans with a bunch of services included. You can choose a plan of your liking and preference and then pay the amount for the given duration. The company that I picked for my property, NoBroker, uses the same model. I liked it as I got complete management, from tenant finding, rent as per market rates, verification of the tenant and also house maintenance in the same plan.

Percentage

Like I described above, some companies opt for a percentage of the rent that your house is generating. If the house rent is below a threshold, then, companies charge a fixed sum.

This is all about how much does a property management cost. I hope it helps.

A rental property management company is responsible for overseeing and handling various aspects of property management on behalf of property owners. The property management fees is not fixed for all the companies. Usually, the property management fee is 8% to 12% of the monthly rent collected. But to determine how much do rental management companies cost, it will be better to select a company and ask them about their charge.

How much do Property Management Companies Charge?

The property management cost per month will depend on the type of work they are performing. They charge a 

• One-time fee, often equal to one month's rent when securing a new tenant

• The charges for coordinating maintenance and repairs are also to be taken based on the extent of the work.

• Fees may apply when the property is vacant, either at a flat rate or a percentage of rent.

• Eviction assistance and legal services may incur extra costs.

• Full-service property management costs more than basic services.

• Some companies charge initial setup fees for administrative tasks.

So suppose your monthly rent is Rs 20,000, then the property management fee would be Rs 2,000 based on an average 10% fee.

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Hey,

Managing your house, your job, family and other responsibilities get tiring. When I was in the middle of my real estate journey, I got a property manager to help me out. In this answer, I will be sharing how much does a property manager cost. Read my answer to know more. 

• The exact cost for hiring a property manager will depend on the roles and responsibilities you would like them to take during their time with you. According to market research, the average management fee is 8-12 % of the monthly rent to manage the residential property. 

There are other charges levied by a property manager :

• Maintenance charges 

• Contract setup charge

• Late payment charge etc. 

The actuals which you will be paying to the property manager will depend on numerous factors. 

• Type of property 

The property manager will charge a different price for managing residential property, industrial property and commercial property.

• Condition of the property

Depending on the condition of the property, the average management fee taken will depend on the condition of the property. 

• Roles and responsibilities allotted

There is a long list of actions that can be fulfilled by the property manager. You will have to decide what roles you would like the manager to handle. 

• Location of the property 

The cost of managing property will vary and depend upon location. Urban property management and rural property management cost differently. 

This is the end of my answer about how much does a property manager cost.