What Do Property Management Companies Charge around Winston Salem?

Roby Robertson Owner Carolina Living Real Estate

Property managers typically charge a fee for handling the day-to-day operations of managing a rental property. The fees can vary depending on the services they provide, the location of the property, and the type of property being managed. Here's a breakdown of what you can expect:

1. Management Fee (Monthly):

• Typical Range: 8% to 12% of the monthly rent.   Carolina Living has an 8% starting rate!

• This is the fee the property manager charges for handling the day-to-day tasks like finding tenants, screening applicants, collecting rent, coordinating maintenance, and managing the property's financials.

Example: If the property rents for $2,000 per month, the management fee would be between $160 and $240.  

2. Leasing or Placement Fee:

• Typical Range: 50% to 100% of one month's rent.  Carolina Living does NOT charge for this.

• This fee is charged when the property manager finds a new tenant. It often includes marketing the property, showing it to prospective tenants, and handling the lease signing.

Example: If the property rents for $2,000 per month, the leasing fee might be anywhere from $1,000 to $2,000.

3. Maintenance Fees:

• Property managers often coordinate maintenance and repairs, but they may charge an additional fee for managing these tasks. This fee could be a flat rate or a percentage of the repair costs (typically around 10%).   Carolina Living Does NOT charge to dispatch maintenance vendors.

Example: If a repair costs $500, the manager might charge $50 for coordinating the job.

4. Renewal Fees:

• Typical Range: $100 to $300.  Carolina Living does NOT charge for this.

• When a current tenant renews their lease, the property manager may charge a renewal fee. This is often lower than the leasing fee, as less work is involved in renewing an existing tenant.

5. Eviction Fees:

• Typical Range: $300 to $500 (or higher).  Carolina Living Pays for this out of Tenant Security Deposit.

• If the property manager has to initiate an eviction process, they may charge an additional fee for handling the legal steps, paperwork, and court appearances.

6. Other Miscellaneous Fees: Carolina Living does NOT charge for this.

• Advertising Fees: If the property manager uses a paid service to advertise your property, they may charge you for those costs.

• Inspection Fees: Some managers charge for periodic property inspections (e.g., for move-in, move-out, or regular property checks).

Overall Costs:

For a typical single-family rental, property management fees often fall between 10% to 15% of the monthly rent, considering the combined leasing and management services. For multi-unit properties or commercial real estate, the fees can sometimes be lower (around 5% to 8%) since the work involved might be less per unit.

Things to Keep in Mind:

• Negotiability: Many fees are negotiable, especially if you have multiple properties or are willing to sign a long-term contract.

• Services Included: Always clarify what services are covered under the management fee. For example, some property managers may include maintenance coordination, tenant screening, and rent collection in their base fee, while others may charge extra for these services.

• Hidden Costs: Be cautious about "hidden fees" that might be tacked on for things like handling late rent payments or preparing detailed financial reports.

Are you thinking about hiring a property manager, or just curious about the costs involved? If you’re managing rental properties yourself or want to find ways to negotiate a better deal, I can offer more tips too!