Working with a property manager makes it possible for you to manage your real estate more efficiently, especially if it’s not where you currently live. This means you can choose to invest in areas with exciting growth potential. One area that we have our sights on is Huntsville, AL, where home prices were up 22.1% compared to last year, and median home prices are $332K. Compare that to the national average, where prices are increasing by 14.7% compared to last year, and you’ll get why Huntsville is such an exciting market to invest in right now.
The cost of hiring a property manager depends on your location and several other variables, such as the type of rental and the number of services you’re looking for. In this article, we examine five different property management companies in Huntsville and the various fees they charge so you can get an idea of what to expect!
Before we get started, it’s essential to consider that there are circumstances where a property management company (in this case, Evernest) might not be the best choice for you. We cover a few ways to know for sure in this video:
Most property managers charge a leasing fee to reflect the time and effort spent finding a tenant for the rental property. The services covered by this fee may include:
If you prefer, you can hire a property manager only during this leasing period, opting to handle the ongoing management yourself after a tenant is placed.
Some leasing fees are charged at a flat rate, but more typically, they are calculated as a percentage of the first month’s rent. In the Huntsville area, a leasing fee can run from 10% to 75% of your first month’s rent or from $350 to $1000.
Some property managers will offer lower leasing fees with their premium membership tiers. For example, Evernest’s platinum membership ($199 a month) comes with no leasing fee.
|Company||Leasing Fee (% of first month’s rent)|
|Valley Homes Realty||10%|
To have a property manager oversee your rental property for you, you’ll pay a monthly management fee. Here, prices will vary as a result of the services included — this is why it’s less important to just choose the cheapest option and more important to look into what services are included in the cost.
The cost of property management may be a fixed charge or a percentage fee, depending on the company you work with. A percentage fee is a proportion of your monthly rent, whereas a flat fee is a fixed amount you’ll pay each month.
In Huntsville, flat fees will be around $99 per month, whereas percentage fees can range from 8-10%. The factors that determine these fees include the price of your rent, the type of property you own, and the scope of services your property manager provides.
Some property managers will reduce their fees if you choose them to manage multiple properties for you — Valley Homes Realty, for example, reduces their fee from 10% to 8% of your monthly rent if they manage 3 or more of your properties.
|Valley Homes Realty||10%|
|Evernest||8%, or $109-199/month|
Some property management companies will handle repairs and routine maintenance for you. This can be a good option because a property manager may have connections with local suppliers and contractors that enable them to negotiate a cheaper price than you would be able to get on your own.
You’ll also find that a lot of property managers will organize the completion of certain repairs as needed. To cover this, you will have to set aside a certain amount of money in a reserve repair fund. The minimum amount that must remain in your reserve repair fund and the procedures for authorizing the use of these funds will be outlined in your property management agreement.
When your tenant’s lease is up, most property managers will charge a fee to cover the cost of negotiating and completing lease renewal documents with tenants who choose to stay in your rental. Similar to the leasing fee, this can be a flat fee or a percentage of the monthly rent. For some property managers, the lease renewal fee will be waived altogether.
In Huntsville, a lease renewal fee can range from 35-50% of your monthly rent.
|Marketplace Homes||Information not available|
|Rosenblum Realty||Information not available|
|Valley Homes Realty||Waived|
If your unit is vacant, your property management company may continue to charge their full monthly management fee, or they may charge a separate vacant unit fee.
At Evernest, our flat monthly management fee covers the cost of monthly vacant unit inspections (providing you with peace of mind!).
While it’s not common, you may find yourself in a situation where you need to evict a tenant. Tenant evictions can be handled by your property manager. Some charge a fee to do this, while others offer an eviction guarantee with their premium membership tiers.
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.
Further reading: How To Navigate The Eviction Process As A Landlord
Routine inspections are vital to guarantee that your tenant’s rental is well-maintained and detect problems before they turn into costly repairs. Depending on your property manager, you may be charged an additional fee for periodic or move-out inspections.
In Huntsville, move-in and move-out inspections are generally included with the leasing or monthly property management fees.
|Marketplace Homes||6-month inspections and move-out inspections included|
|Rosenblum Realty||Information not available|
|Valley Homes Realty||Move-in and move-out inspections included|
|AHI Properties||Move-in and move-out inspections included|
|Evernest||Move-in and move-out inspections included; while the property is vacant, monthly inspections included|
Some companies will charge an early termination fee if you choose to end your contract with your property manager early. These fees can vary greatly, so be sure to know your property manager’s policy.
At Evernest, we think that if you’re dissatisfied, you should be able to terminate your contract with us at any time. That’s our 100% Happiness Guarantee.
Because there are multiple factors that might impact the fees your property manager charges you, we’ve listed many of the costs above as ranges. These are the factors that might affect your total fees:
If you’re excited to invest in the Huntsville market, hiring the right property manager will help you build your business and achieve the real estate outcomes you want.
Evernest has made it our purpose to support our property owners in achieving a consistent return on their investment, hassle-free.
And if we can’t find a qualified tenant for your Huntsville rental property in 21 days or less, your first two months of management are on us.
Ready to get started? Send us an inquiry today. >>
All claims are a result of an industry-wide audit done by our in-house team. If we missed something or have provided incorrect information, please let us know at [email protected]
Lucas is a Content Strategist for Evernest. You can find Lucas drinking coffee or eating tacos when he isn’t doing research or creating content. Lucas is a North Dakotan living in Austin, TX, with his wife and daughter.