Atlanta Property Management Fees Explained (What You Really Pay For)

As a landlord or rental owner, property management is a huge part of running your rental property business. However, there is a way to free up your workload and delegate to a property manager. The question is, how much would it cost? Continue reading to know more about how such services work and the property management fees Atlanta landlords must know.

Key Takeaways

• Property management fees in Atlanta usually come in different payment fee structures, including percentage-based, flat fee, or a lease-only agreement.
• Property management services usually include tenant screening, maintenance coordination, and legal compliance.
• Leasing fees, renewal fees, maintenance markups, and vacancy charges can significantly increase your overall expenses beyond the base rate.

Typical Fee Structures

Let’s start with the most common fee structures for property management services. As Atlanta property managers, we know that management fees come in a few different pricing models, including percentage-based, flat fee, and lease-only fee. Let’s take a look at each one.

First is the percentage-based fee, which is the most common payment structure. In this setup, the payment for the property manager comes as a percentage of the monthly rent collected from the income property. Typically, the percentage range falls around 8% to 12%, depending on the type of property and location. The notion with a percentage-based fee structure is that it motivates property managers to keep the rental occupied and retain existing tenants.

Next is the flat fee payment model. Here, you come to an agreement with the property manager and pay a fixed monthly fee. Based on our experience, this can be beneficial for landlords who prefer predictable monthly costs, particularly those with multiple properties. Why? Simply because it cuts the tedious process of calculating percentages to determine the monthly fee, and it simplifies the budgeting involved in hiring a property manager.

Then, there is the lease-only fee, which is a flexible setup that basically allows a landlord or rental owner to hire a property manager specifically for the leasing phase of the rental business. Here, the property manager only deals with marketing, tenant screening, and lease preparation, while you still handle your property’s day-to-day operations. This works well if you want to streamline your leasing process and minimize vacancy time.

What Services Are Included

To better understand the worth of the property management fees Atlanta landlords typically pay, let’s go over the services that are more commonly included in a full-service package.

• Marketing and Advertising: This typically involves implementing marketing strategies, creating property online listings, conducting showcases, and more to boost visibility and attract a broad pool of applicants.
• Tenant Screening and Leasing: This covers the process of screening an applicant, such as background checks, employment verification, credit analysis, and rental history reviews. Aside from this, the property manager can also handle the documentation and paperwork needed to finalize a lease agreement. All of which is in accordance with Fair Housing Laws.
• Property Repair and Maintenance Coordination: Oversees routine property inspections, manages tenant repair requests, and coordinates with vendors to maintain the condition of the property.
• Rent and Fees Collection: This involves processing rent collection from tenants and recording each payment accordingly. Similarly, property managers can also handle the collection of additional fees, such as late rent fees, parking fees, and the like.
• Tenant Communications: Handles communication lines and acts as a middleman between the landlord and the tenant. Property managers are also most often the primary point of contact for tenants if they have concerns regarding the property.
• Legal Compliance and Policy Implementation: Ensures that the rental property business maintains compliance with federal, state, and local housing regulations at all times. Similarly, property managers can enforce specific property rules and regulations, making sure that policies are implemented consistently, fairly, and without discrimination across all tenants.

Hidden or Additional Property Management Fees

Aside from the base service fee you pay to a property manager, there are a handful of additional property management fees that can increase your monthly expenses. So, to avoid getting surprised or asking where a particular fee came from, here’s a quick recap of the common hidden or additional property management fees Atlanta landlords should know about.

First, property management companies often charge a setup or onboarding fee to get your property into their system. This covers the account setup and the initial property inspection commonly required to ensure compliance and habitability.

Then, there’s the leasing fee, which is something you pay whenever a tenant is successfully placed. Similarly, the lease renewal fee is a similar payment that happens when an existing tenant decides to extend or renew their contract. At the same time, there is the eviction fee, which is charged to cover the cost of handling eviction filings and court appearances for tenant-landlord disputes handled in accordance with local landlord-tenant laws and Fair Housing regulations.

In some cases, property managers may ask for a vacancy fee to cover the costs of marketing and inspections involved in the process of finding you a new tenant. Lastly, some companies include a maintenance markup, which is a 10% to 20% charge on top of vendor invoices, which is meant to cover the time and effort it takes to coordinate repairs. On other occasions, some companies may charge a flat coordination fee instead.

Benefits of Hiring a Property Manager

Knowing what the property management fees Atlanta landlords usually pay for is only one piece of the puzzle. If you’re a landlord or rental owner, you might be asking why you should consider hiring a property manager for your rental property business. To give you a better understanding, here’s a quick recap of the benefits of hiring a property manager:

• Their expertise and knowledge of the local housing market can help in coming up with strategic and competitive pricing strategies, which can help to fill vacancies faster.
• Property managers screen rental applicants by using objective criteria like credit history, references, and income verification. This process reduces the risk of payment issues by ensuring consistent, compliant screening practices.
• Managers also play a huge role in building rapport with vendors and tenants. These are key when it comes to reliable repair services, as well as positive and healthy tenant relationships for communications.
• Property managers are committed to maintaining compliance, even with evolving housing laws.
• Delegating day-to-day management of your rental business property frees you to focus on more important business matters.

Partner With Bay Property Management Group for Your Management Needs

Before you commit to a property management contract, you need to understand the basics of the different property management fees Atlanta landlords usually pay for. Aside from the standard service fee, additional charges can inflate your bill. Aside from this, you also need to determine the ideal property management fee model that suits your needs.

In need of expert and professional property management services in Atlanta or nearby areas? We at Bay Property Management Group are ready to help. Take a load off your shoulders and let our team of property managers protect your property and improve long-term returns. Start your journey with BMG, and contact us today to find out more.