The cost of property management remains the primary concern for those sitting on the fence. If for nothing else, average property management fees can run investors somewhere in the neighborhood of eight to 12 percent of the monthly rent value. Some property managers will also charge a A flat fee, in addition to the monthly percent.
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Factors That Influence Property Management Costs
Factors that influence the commission rate an agent charges include: If advertising and marketing costs are bundled into their commission structure, or charged separately. The type of property, with more unusual properties typically attracting a higher commission. The value of your property, where agents are often prepared to charge a smaller commission for a high end property. Although many factors among them the loan-to-value ratio and the policies of the lender you’re dealing with — can influence the terms of a loan on an investment property, you’ll want to check your credit score before attempting a deal. it can start to cost you additional money for the same interest rate,” huettner says.
Unless you plan to manage a commercial property yourself, hiring a commercial property management company is a must for any serious commercial real estate investor. However, just like any service, property management costs money. Typically, a commercial property management fee will be between 4-12% of the rent for a commercial property, though this can vary greatly upon several factors, including the location, size and condition of the property, the amount, type, and quality of tenants, the specific services that the company is expected to perform, and the average property management rates for that area.