How Much are Management Fees for Rental Properties?

Maintaining property without being at that place is very difficult. We have a property in Mumbai, but we all live in Bangalore. My parents used to go to Mumbai every two months to check out the property and collect the rent. But we realised that, in the long run, it was not possible. We, therefore, opted for a property management service. Many of you, without knowing exactly how much are management fees for rental properties, believe they are costly, but NO. The cost my parents spent on flight tickets was more. So let me share what is the average property management fee for rental properties. I will also share here some well-known property management services you can opt for.

The average management fee for rental property remains between 8% to 12% of the monthly rent collected. For example, if the rent is Rs 30,000, the property management service will charge between Rs 2,400 and Rs 3,600.  Isn’t this cheap?

A property management company can charge you an amount apart from the monthly fee. Here are some aspects for which they levy charges-

this is a one-time fee that you will need to pay when you first hire them. The company does the inspection of the property, lays out plans for how things are going to be worked out, and more at this stage.

management fees for the property are to be paid separately. It is usually within 1.5% of the monthly rent. In the case of any renovation, installation, or more, this fee helps the company complete the work on the property.

this fee is charged by the property management company to re-lease the property after it becomes vacant. This is usually the month’s rent or some percentage stated in the agreement.

the property management company charges this fee for handling the renewal of a tenant’s lease after the stipulated time.

Other fees that also get charged are- eviction fees, early termination fees, and more.

Some property management companies you can opt for are- 

• NoBroker

• DLF Ltd.

• Elara Technologies Pte Ltd

• Godrej Industries Ltd

• Ajmera Realty & Infra India Ltd

• Assetz Property Services Pvt. Ltd.

• Cushman & Wakefield etc

I hope this answers how much are management fees for rental properties.