Everything is more expensive, and that can get frustrating pretty quickly, especially when you’re trying to stay on budget.
Property management fees have gone up over the last few years, too, but it’s not only inflation and higher prices generally that have pushed them up.
We’re also doing a lot more than we once did. When you partner with a Dayton property manager, you’re not just getting someone who will place a tenant, collect rent, and respond to maintenance. If you’ve chosen a good management team, you’re getting someone who understands the rental market deeply, leverages their position within that market, and helps you make smart decisions for your property and your entire investment portfolio.
A lot of the work we do cannot possibly be quantified. A good relationship between a property manager and an owner or investor is not transactional. It’s impactful and meaningful, and it’s going to make you less stressed and more profitable.
There are still economics to consider, of course, and while you’re probably willing to invest in good property management, you likely don’t want to overpay for it. Nor should you.
Let’s talk about how much you can expect to pay for professional property management in Dayton.
Understanding Dayton Property Management Costs
There are several common fee structures that are typically used by Dayton property managers. Most management companies will charge you a percentage of rent. It’s a common model, and the fee will be deducted before your rent is deposited into your account. It’s easy. Typically, the rate hovers between 8% and 12% of the rent that’s collected by your property manager.
Some companies might prefer to charge a flat fee instead of a percentage. This can be appealing if you have a high-rent property because it means you’re not paying more just because your property manager is collecting more. However, the argument can also be made that by charging a percentage, there’s an added incentive for your property manager to ensure that rents are at the highest point that the market will allow.
Another thing to look for is whether the property management fee is all-inclusive or whether you’ll be expected to pay for extra services. We’re going to talk about leasing fees in a moment, which are pretty standard, and some companies might also charge extra for maintenance and repair fees. These costs vary and can either be a flat fee or a percentage. So, a property manager might include a $100 surcharge on any maintenance invoice over $300, or they might charge a 10% fee on the entire maintenance invoice.
You might encounter a lease renewal fee, which is a small percentage of the rent or a flat fee, for renewing a tenant’s lease. This covers the administrative costs associated with lease renewals.
Some property managers will add additional fees such as:
- Administrative fees or paperwork fees.
- Set-up fees when you first sign a management agreement.
- Correspondence fees when letters have to be sent out or notices have to be served.
- Technology fees to cover the cost of their software.
There’s no one way to charge property management fees. Just make sure you’re aware of what you’re paying for and what might be extra. Transparency is especially important when we’re talking about what you pay.
Typical Property Management Fees in Dayton
In Dayton, the average property management costs follow the general industry standards, with some variations depending on the services offered and the specific market dynamics. If you have a number of properties to be managed, you’ll likely get a discount. If you’re looking for lease-only services, your fees and costs will be different than if you need full-service management.
As you’re comparing the fees that one company charges to the fees that another company charges, make sure you’re taking into account what you’re getting
- Management Fee
Most property management companies in Dayton charge between 8% and 12% of the monthly rent as their management fee. For example, if your property rents for $1,200 per month, you might expect to pay between $100 and $145 monthly.
- Leasing Fee
Commonly, leasing fees in Dayton range from 50% to 100% of one month’s rent. This fee covers all the tasks involved in placing a new tenant, including marketing, showings, screening, and lease preparation. Again, with the $1,200 rental amount, your leasing fee may be $600 or it may be $1,200.
As we mentioned, some property managers might charge additional fees for services such as eviction processing, late payment handling, or special projects. These fees are typically less common and will vary from company to company. See what’s in the management agreement before you sign it so you know what to expect.
Factors Influencing Property Management Costs
While the figures mentioned provide a general sense of property management costs in Dayton, several factors could influence the exact amount that you’ll pay to have your property professionally leased, managed, and maintained:
- Property Location. Where does your property manager have to go in order to manage your property effectively? This could make a difference. More remote locations will require extra driving, and that may mean that you’re paying more to cover that.
- Property Size and Type. Larger properties or multi-family units may attract a higher fee due to the complexity of managing more tenants and maintenance needs. When we look at your costs on a per-unit basis, you will save money on a collection of units that happen to be in the same building, but you’re still paying for the management of each rental home rather than the management of a single building.
- Service Level. The level of service you choose will significantly impact the cost. A comprehensive service package will be more expensive than a basic package with minimal services. Many property managers will offer different pricing tiers for their services. You’ll have to decide what you want to have included.
Property management fees in Dayton will depend on a number of things, but this should tell you what you can generally expect to pay. As we have stressed – this is not a commodity. Good property management is worth your investment. Also – those fees are tax deductible.
Remember, if it’s a property managed by ManCo, life just got better. Let’s talk about our fees and the value we can deliver to your investment. When you’re looking for Dayton property management, contact us at ManCo Property Services.