When renting out a property, hiring a property manager can make your life easier. They handle the day-to-day operations—from marketing the property to dealing with maintenance issues. However, this convenience comes with a cost. Property management fees can vary widely, so it’s important to understand how they work before signing an agreement.
Here’s a breakdown of typical property management fees and what you can expect from Trust Properties, which charges a flat 10% of any rent collected.
📊 Standard Property Management Fees: What’s the Range?
Property management fees typically range from 8% to 12% of the monthly rent. The exact percentage often depends on factors like:
- The location of the property
- The type of property (e.g., single-family home, multi-unit building)
- The services included in the management agreement
For example, if you’re renting out a property for $1,000 per month, a management fee of 10% would mean you pay $100 per month for the services of the property manager.
📝 Additional Fees to Consider
In addition to the standard management fee, there may be other fees depending on your agreement. These can include:
- Leasing Fees
When a new tenant is found, property managers may charge a leasing fee, typically one month’s rent or a set percentage. This covers the cost of marketing the property, screening tenants, and handling the lease signing. - Renewal Fees
When an existing tenant renews their lease, property managers may charge a renewal fee. This fee can range from $100 to $300 and covers the administrative costs of preparing the new lease agreement. - Maintenance Markups
Property managers may charge a markup on maintenance costs. For example, if a repair costs $100, the property manager might charge you $120, adding a 20% markup to cover their time and coordination.
These additional fees can add up, so it’s important to review the terms of your property management agreement to understand the full cost structure.
🏢 Trust Properties: What You Can Expect
If you choose to work with Trust Properties, their fee structure is straightforward. They charge a flat 10% of any rent collected, which is on the lower end of the typical property management fee range.
This means, for every $1,000 in rent, you’ll pay $100 per month for their management services. This includes all the essential services, such as:
- Tenant screening
- Rent collection
- Maintenance coordination
- Legal compliance
Trust Properties focuses on providing value without adding unnecessary extra fees, making it a clear and transparent option for landlords.
💡 Things to Keep in Mind
While the management fee may seem like a significant monthly expense, remember that a good property manager can save you time, reduce stress, and ensure your property is well-maintained—all of which can lead to greater profitability in the long run.
Before signing an agreement, make sure to:
- Compare fees across different property managers
- Understand exactly what services are included
- Ask about any additional costs, like leasing fees or maintenance markups
- Review the contract carefully to ensure there are no hidden charges
Final Thoughts
Property management fees are a necessary cost for landlords who want to outsource the responsibilities of running a rental property. Whether you’re paying a flat percentage or dealing with additional leasing and maintenance fees, it’s important to fully understand what you’re getting for your money.
With Trust Properties, you know exactly what you’ll be paying—10% of the rent collected. It’s an affordable, transparent way to ensure your property is in good hands.