Property managers help landlords manage their rental properties, from finding and screening tenants to handling maintenance concerns. Owning a rental property is certainly financially rewarding, but it also requires more time and effort than some landlords might expect. Property managers help you save time, so you can focus on growing your business.
But how much do property managers charge? The expense varies depending on your location, as well as factors including property type and the level of services offered.
Property managers can also make it possible for you to invest in properties outside of the market you currently live in — enabling you to invest in markets where the growth potential is high. One such market is Atlanta, GA, where home prices were up 11.2% compared to last year, selling for a median price of $456K, as of May 2022.
In this article, we look at the fees for ten different property management companies in Atlanta to help you figure out what to expect when it comes to leasing and property management fees in this area.
Before we begin, it’s important to know there are instances when a property manager (specifically, Evernest) might not be a great fit for you. In this video, we lay out a few ways to know for sure.
Most property managers charge a leasing fee, which covers the work involved in getting the rental property leased to a tenant. This can include:
Some landlords may choose to work with a property manager during the leasing period only, opting to handle the ongoing management themselves once a tenant is placed.
Leasing fees can be a flat rate but are generally calculated as a percentage of the first month’s rent. In the Atlanta area, the average leasing fee ranges from 50-100% of the first month’s rent.
Many property management companies offer discounts on the leasing fee — for example, Excalibur offers a 10% discount on their leasing fee if you have multiple properties listed with the company, and several companies offer lower leasing fees with their premium membership tiers, including Evernest, Compass Property Management, Revolution Rental Management, and Specialized Project Management.
Most property managers charge a fee to handle the ongoing management of your rental. But don’t just go with the least expensive option — it’s important to also take into account what services are included in the fee to determine if the cost is a worthwhile investment in your business.
The property management fee may be a flat fee or a percentage fee, depending on the company you work with. The flat fee will be a specific dollar amount that you pay monthly, while a percentage fee is paid as a percentage of each month’s rent.
In Atlanta, flat fees generally range from $100-200, whereas percentage fees range from 5-10%. These fees vary depending on a variety of factors, including your rental rate, the type of property you have, and the scope of services provided.
Some property management companies will handle maintenance and general property upkeep for you. It can be cheaper to work with a property manager to handle these situations because they may have relationships with local vendors and contractors that enable them to negotiate a lower price than you would be able to get on your own.
In the case of specific repairs, many property management companies also coordinate the resolution of these issues. Most companies require landlords to maintain a minimum reserve repair fund to cover the cost of specific repairs. Your property management agreement will list the minimum required amount that you must keep in your reserve repair fund and how you can authorize these funds to be used.
A lease renewal fee covers the costs of negotiating and completing the documents for additional lease terms with existing tenants. This fee can again be either a flat fee or a percentage of monthly rent. Some property managers will waive the cost of lease renewal fees.
In Atlanta, lease renewal fees generally range from $200-500 or between 25-50% of the monthly rent.
Property management companies may also include a monthly fee for vacancies. Some property managers may also still charge their full monthly management fee even if a tenant is not placed — so be sure to note whether this is the case in your agreement.
For our flat-rate plans at Evernest, for example, we charge a monthly management fee during vacancies. That price includes monthly inspections while the property is vacant, delivering you peace of mind.
While rare, you may encounter a situation in which you need to evict a tenant. Your property manager can handle tenant evictions for you — some will charge an additional fee, while others will offer an eviction guarantee with a premium membership tier.
For example, in Atlanta, Specialized Property Management offers an eviction guarantee with their professional and premium management plans, priced at $129 and $189 monthly. At Evernest, eviction protection is included in our Platinum pricing plan, but landlords can also purchase an eviction protection plan as an add-on for an annual rate of $200.
(NOTE: In case our pricing here isn’t clear — Evernest’s Platinum plan starts at $199 per month. Eviction protection is included in that fee. You’d only purchase our eviction protection plan if you opt for our Investor or Gold plans.)
Further reading: How To Navigate The Eviction Process As A Landlord
Routine inspections are critical to ensuring your rental is well-maintained by your tenant and to catch problems before they turn into costly repairs. Most property management companies will charge a fee to conduct periodic inspections or inspections upon move-out.
In Atlanta, the initial move-in inspection is generally included with the leasing fee or monthly property management fee, whereas additional inspections are available for a flat fee.
At Evernest, move-in inspections, move-out inspections, and monthly vacancy home inspections are included without additional cost with each pricing plan. Additional annual inspections are $149 with our investor and gold pricing plans and are included in our platinum plan ($199/month).
Note that if you break your contract with your property manager early, many companies will charge an early termination fee. These fees can vary greatly, so be sure to note this in the terms of your contract.
At Evernest, we think you should be allowed to end your contract with your property manager any time you want if you’re not satisfied. We call it our 100% Happiness Guarantee.
Many of the fees listed above are included as ranges — that’s because there are multiple factors that can affect the final cost of property management fees. These can include:
The Atlanta market is an exciting place to be a real estate investor, and choosing the right property manager can help you to build your business and achieve your goals.
Have we convinced you to dive in? If you’re ready to work with a property manager, we’ve made it our mission at Evernest to provide hassle-free property management and deliver a steady return on investment to our property owners.
Plus, we can guarantee that we’ll place a well-qualified tenant in your rental in Atlanta in 21 days or less, or your first two months of management are free.
What are you waiting for? Send us an inquiry today and let’s get started. >>
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