Many landlords want to know how much it costs to hire a professional property manager in the Salt Lake City area. Generally, property management costs will run between eight and 10 percent of your monthly rental receipts. That means if you’re charging $1,000 in rent for your property, the cost of a good manager will be about $100.
Outside of the general management is the leasing process. Some property managers will charge an additional fee, which is called a leasing fee. That’s an upfront fee that you pay in order to get a tenant placed in your property. At ASPM, we don’t charge a leasing fee. We don’t think it’s fair that property owners would pay a professional to put a bad tenant in place and then have to evict the bad tenant and get paid again to put another tenant in place. Leasing fees seem counterproductive to us, so we don’t charge them to our owners. However, many companies do charge those fees, so make sure you’re comfortable paying them and be prepared for that extra cost.
As we always tell our owners, the cost of professional property management in Salt Lake City will be far outweighed by the increase in income and the decrease in vacancy over time. Really, you hire a property manager for the same reasons you hire a professional accountant or lawyer. They know the industry and they can help you increase your overall income. Don’t spend too much time worrying about what you’re going to pay in management fees every month. Instead, look at your bottom line and what you’ll get in return for what you’re paying.
Professional investors never manage their own properties. They turn them over to property managers because they know that’s how they’ll increase their rental income and the return on their investment.
If you have any questions about the fee structures for property managers, please contact us at Advanced Solutions Property Management.