Partnering with a property management company Toronto is a tried-and-tested technique to generate more income with less effort. But how much does a property management company cost? It depends, like with so many other things, is the response. Start by considering what you want a management company to accomplish for you. The range of services a property management company offers varies greatly.
An owner might only want to assign certain duties and responsibilities to a property manager while maintaining a high level of “hands-on” involvement in other areas. Another owner could want a more “hands-off” style. The location, the kind of property, and the expected number of man-hours to provide property management services all affect the fees.
Contact us at Sider Management Inc. to get the best professionals and hire a property management company.
Property Management – What is it?
Your investment is managed by a property management firm. They will range widely in terms of management services from one company to another. But, the majority of short-term rental businesses will handle virtually every part of renting out your house. Rental property managers and a property management company Toronto can provide you with a variety of services to take care of your property.
How much does Property Management Company Cost?
One-word answers are challenging to come up with. A tenancy agreement may include a setup charge or fixed rate among other things. It is always a good idea to discuss the scope of your property manager’s duties with him before deciding on property management fees.
The two primary ways that property management businesses often set their costs are as a percentage of the rent collected or as a flat monthly fee.
1. Percentage of rent
For the property management company cost, a manager is most frequently paid a portion of the monthly rent. Although it may differ, typically between 8% and 12% of the gross monthly rent is collected. For homes with 10 units or more, as well as for commercial properties, managers frequently charge a smaller percentage, typically between 4% and 7%. However, smaller or residential properties typically have a larger percentage fee of 10% or more.
For instance, a 5% monthly charge for a property renting for $50,000 per month would be $2,500, whereas a 5% fee for a property renting for $2,000 per month would be $100, which could not even cover the management company’s overhead costs. They may alternatively receive $200 if they charged a 10% fee for the rental property with a $2,000 monthly rent.
2. Fixed monthly fee
As an alternative to charging a fee that is calculated as a percentage of the monthly rent, some property management businesses provide a fixed cost structure. The fixed cost is often determined by the type of property, the square footage, and the level of property management services offered.
As a general guideline, a single-family home’s set property management cost might be in the neighborhood of $100 per month. However, management rates will differ from market to market. At first look, a flat fee structure can appear to be a good deal. But a property management company, Toronto that is paid a fixed charge might not be as driven to increase the rental income from your home.
Does a Property Management Company cover all associated costs, including repairs?
Indeed, they will typically treat the property as if it were their own. The specifics of your contract will need to be discussed. However, the majority of respectable management companies will cover everything.
We at Sider Management Inc. take care of each and every detail, no matter how minor, and we promise to always pay your rent on time, whether or not there are tenants occupying the space. Most managers receive a portion of each booking. By selecting this course of action, you run the risk of having an old property and gaps in your rent.
Conclusion
Whether it’s a percentage of rent or fixed monthly income, property managers generally charge on the basis of these two methods. It’s best to hire a property management company if you feel unable to handle all of those duties alone. If you lack the knowledge of the Residential Tenancy Act and the local and provincial legislation related to being a landlord, you should partner with a property manager. Contact us today for high-quality property management.