A Look at Average Property Management Fees in Washington State
If you’re considering hiring a property manager to ease the difficulties of being a real estate investor or property owner, one of the first questions you’re asking is probably this: Just how much does a property manager cost? The answer, of course, is not always simple—the average cost of property management services will vary. Most property management companies have rates that allocate a percentage of your property's monthly rent to their services.
How Much Does it Cost for Property Management Near Seattle
Seattle property management fees are typically about 10 percent of the monthly rent value of the property. This is smack in the middle of national industry averages, which puts typical property management fees in the range of 8-12 percent. Some companies may charge a flat monthly rate, which could be a good value but could also be deceiving if it is a very low monthly rate with a gauntlet of hidden fees. It all depends on which property manager you choose to hire and what services they provide for that rate.
These percentages vary based on the value of the property, so speak with a team member at each of the companies you are evaluating to discuss your property specifically.
So now you may be wondering, what do property management fees cover? Here again, the answer depends on the company’s services and your specific property management needs. For example, Powell Property Management is a full-service property management company for both residential & commercial properties—but there are many other service models out there, so it’s important to understand some of the common services offered by property managers and to be sure you ask the right questions before hiring one.
That said, here is a common property management fee breakdown (depending on the company, you may see some or all of these types of fees in your contract):
Common Property Management Company Fees
1. Monthly management fee
The monthly management fee typically covers monthly services like handling rent collection, maintenance requests, and other tenant communications.
2. Leasing fee
The leasing fee is a fee some property managers charge for finding a suitable tenant—a process that usually includes services like running background checks, prior eviction searches, financial verifications, and other tenant vetting services.
3. Vacancy fee
Some property managers charge the property owner an additional fee when the property is vacant. This is commonly noted as a “vacancy fee.”
4. Lease renewal
Property managers may charge a “lease renewal fee” each time a lease is renewed with existing tenants to cover the additional costs (and time) required to update and process the new lease. This is due to the time it takes to communicate with the tenants about any market based rent changes, to prepare and collect new lease documentation from tenants, and other miscellaneous items.
5. Repair funds
As will any inhabited space, regular maintenance and upkeep will be required. Thus, management companies may ask property owners to provide reserve funds to cover the cost of minor maintenance and repairs, so managers don't need to contact the owner every time. If this “repair funds” fee is applied, and you decide to switch property management companies, the owner should be refunded any unused amount if and when the agreement is terminated with the property manager.
Look for Value Added Property Management
Most importantly, if you’re considering hiring a property manager and you’re looking for the lowest fee out there, be wary of hidden fees that can come with those “too good to be true” super-low rates. Unfortunately, sometimes less-reputable companies have these kind of unethical practices in place, which can prove more a headache than a help for you, the investment property owner. Learn to find the right property manager for you in 2020.
It’s Not Just a Property, It’s Your Property
At Powell Property Management, you can rest assured your property is in caring, honest, and experienced hands. Our company credo is that it is not just a property, it is your property. And we are committed to seeing that you get the most out of it. That has been our way since 1909 when our family business began.
Worried about the cost of hiring a property manager? The fees are worth the peace of mind knowing everything is under control. A property manager can also get you more rental income for your property than you may be able to get yourself with extra amenities and a an in-depth knowledge of the rental market. Get in touch to learn about the property management fees for your single-family home, duplex, apartment, or commercial property.