A question we get asked all the time is – what kinds of fees and costs are associated with property management? Fees can vary. In the Las Vegas and Henderson area, we have seen them as low as six percent and as high as 10 percent a month, on either collected rent or projected rent. Some companies charge only on the rents they collect, meaning the rent made on occupied homes. There are a lot of companies who will also charge for vacant properties as well. When it comes to start up costs, those vary as well. Fees can be as little as zero and as high as a full month’s rent. It really depends on the property management company you choose.
One thing that I think is important to point out is that your property management fees are usually tax deductible. As an investor, you can write off what you spend on property management services at tax time. There are other tax credits you can take, but make sure you talk to your accountant before you do that. Property management is similar to an insurance policy. As you have heard us say in other blogs, we spend a lot of time protecting owners from liability. The property management fee you pay up front can actually save you a lot of money in the long term, particularly when you think about the potential lawsuits that can arise if you decide to try and manage the property yourself. We keep very strict systems in place, and many times those systems that we implement require us to do everything the same way and treat every tenant the same way. This helps us avoid any issues of favoritism or potential discriminatory practices.
Finally, it’s important for you to think about how valuable your time is. A good property manager costs about as much as a steak dinner. Your time is probably worth that. Whatever profession you’re in, do you want to spend your time managing your investment property, or doing what you do best?
Your time is valuable. As professional property managers, this is what we do best. We do it efficiently and effectively, and it ends up saving you a lot of money and a lot of time.
If you have any questions about the costs and fees involved in property management, or you’d like to know how we charge for services at Ravago Group Property Management, please don’t hesitate to contact us.