How Much Do Property Managers Charge in Jackson?
Owning rental properties can be very profitable, but they also take time and effort to maintain. Property managers can secure tenants, run background checks, and handle maintenance issues. The time you save by hiring a property manager to handle the day-to-day responsibilities of the property can then be spent focusing on expanding your business in other ways. Working with a property manager makes it easy for you to invest in markets with strong growth potential. You don’t even have to live there! Simply work with a property manager local to the area. You may be wondering how much you should expect to pay for property management. Property management fees vary based on location and multiple other factors, including type of rental unit and the number of services you need. Are you looking to hire a property manager in Jackson? This article will walk you through the common fees and pricing structures of property management to give you an idea of what to expect in the Jackson area. Disclaimer: It’s important to note that there are cases when a property manager (specifically, Evernest) may not be your best option. In this video, we go over a few ways you can know for sure.
Leasing Fees for Jackson Landlords
Property managers charge leasing fees to compensate for the time and cost of finding residents for your rental property. This fee covers services like:
- Advertising the property
- Holding showings
- Screening potential tenants, and
- Preparing the lease agreement
Landlords may choose to temporarily hire a property manager to help them secure tenants but then choose to handle ongoing management themselves. Leasing fees vary based on the property management company you choose. Some leasing fees are charged at a flat rate, but often they consist of a certain percentage of the first month’s rent. Many property management companies will offer several different membership options. They may also offer leasing fee discounts for premium membership tiers that come with more services. For example, if you choose Evernest’s platinum membership, there is no leasing fee.
Fixed vs. Percentage-Based Fees in Jackson
Property managers typically charge a fee for the routine, daily management of the property. Since management fees will vary based on the services included, it is important to note the services included in the cost rather than choosing the cheapest option. In a percentage-based management fee structure, the property manager collects a portion of your monthly rent as payment for their services. Typical percentage-based management fees are between 8% to 12% of monthly rent. Property managers can also charge a flat management fee. The flat fee is a fixed amount of money you will pay monthly.
Repairs and Maintenance Fees
Your property manager will handle the general upkeep of your property including trash removal, landscaping, and appliance maintenance. Property managers often have connections with local contractors and suppliers. This allows them to arrange cheaper repair and maintenance costs than you could on your own. Property managers will also coordinate repairs to be completed as they are needed. To do this, they will require landlords to have a specific amount of money set aside in a reserve repair fund. Your property management agreement will lay out the amount you need to keep in your reserve repair fund, as well as how you can authorize the use of these funds.
Leasing Renewal Fees
If a resident chooses to stay in your rental after their lease is up, many property managers charge a fee to negotiate and complete a lease renewal. The leasing renewal fee can be a flat fee or percentage of the monthly rent. Some property managers waive lease renewal fees.
Vacant Unit Fees
Unoccupied units need to be inspected regularly to maintain insurance policies and to ensure the unit remains in good condition. Property managers may continue to charge the full management fee for a vacant unit, or they may charge a vacancy fee.
New Tenant Placement
The tenant placement fees cover the expenses of securing new tenants for vacant units. Again, these fees can be a flat amount or a certain percentage of the monthly rent. Tenant placement fees include the cost of advertising the vacant unit, screening prospective tenants, and preparing the unit for move-in.
Eviction Fees
While uncommon, there may come a time when you need to evict a resident. Your property manager can help you through the process of tenant evictions. Some property managers charge an additional fee to handle an eviction, while others offer an eviction guarantee with their higher management tiers. At Evernest, eviction protection is included in our Platinum pricing plan. Landlords can also purchase an eviction protection plan as an add-on for $200 per year. Further reading: How To Navigate The Eviction Process As A Landlord
Routine Inspection Fees
Regular inspections of your property are important to make sure that your tenant’s rental is well maintained and to detect any problems before they become costly to repair. Most property managers charge fees for regular inspections. Each of our pricing plans at Evernest include move-in/move-out inspections, as well as monthly vacancy inspections. Additional annual inspections cost $149 with our investor and gold pricing plans, but are included in our platinum pricing plan at no extra cost.
Contract Termination Fees
If you terminate your property management contract before it's over, many companies will charge an early termination fee. These fees can vary greatly and will be detailed in your contract. Here at Evernest, though, we have a 100% Happiness Guarantee. If you are dissatisfied with our services, you can cancel the management agreement at any time, without paying a termination fee.
Factors Affecting Property Management Fees in Jackson
Multiple factors impact the final cost of property management, which is why we’ve listed most of the above fees as ranges. Here are some factors that might affect the fees your property manager charges you:
- Type of property: Your property manager's fees depend on whether your rental property is a single-family home, a multi-family apartment complex, or a commercial property.
- Size of property: The size of your property will also affect cost, since larger properties require more time to maintain than smaller ones.
- Condition of property: When a property is new or has been remodeled recently, it will likely have lower maintenance and repair costs than an older property.
- Neighborhood rating: If your property is in a neighborhood where monthly rent is high, property managers will likely charge more than they do for properties located in less expensive neighborhoods.
- Market competition: If your rental is in an area with little competition for property managers, they may be able to demand higher rates.
- Extent of services: Lastly, the extent of services offered by your property manager influences the overall cost. Services such as 24 hour resident communication, maintenance management, and financial reports take a greater investment for a property manager than simply handling rent collection.
Hire Evernest as your Jackson Property Manager
If you’re looking to hire a property manager in Jackson, you’re at the right place! Choosing the right property management company will help you grow your business and reach the real estate outcomes you want. Here at Evernest, we’ve made it our purpose to help our investors to realize a consistent return on their investment, hassle free. Plus, if we can’t find a qualified renter for your Jackson unit in 21 days or less, we’ll give you your first two months of management for free. Ready to get started? Reach out today to learn more about our Jackson property management fees and pricing.