Typical Property Management Fees in Huntsville and Madison, Alabama

If you own real estate in Madison, Alabama and are considering leasing or renting, you may want to consider the added value of hiring a property management company to do the heavy lifting for you. These professionals know the Huntsville and Madison market, and will recommend the best list price for your specific situation. Property managers can also handle any tenant concerns as they arrive. They can even help you to find qualified tenant(s) for your property. But, is it affordable? You may find that property management fees in the Huntsville and Madison are quite affordable and well worth the peace of mind a good property manager can provide.

What You Can Expect to Pay?

Management fees vary from one property management company to the next. Residential management fees can be as low as 8% and as high as 12% for monthly management. As a property Owner you should ask the question, “what do I get for your fee?” If you simply want to fill a vacant property and have your property manager collect and distribute rent, you can expect fees on the lower end of the fee range. However, if you are looking for a more involved / informed relationship with your property manager, chances are you will pay for what you get. The most typical management fees you will encounter are listed below.

Monthly Management Fees: This is the most typical fee paid by the property owner to the property management company. These vary based on the type of property, as well as, the market and level of service. The basic management fee for single-family residential properties in the Huntsville / Madison area is going to be around 10% of monthly rent. Multi-family residential and investors with multiple properties in their portfolio can expect to pay less.

Leasing / Marketing Fees: These fees are often applicable when there is a need to find a new tenant. These fees can range from 25% to 100% of the first month's rent though it is much more common for them to be in the middle of this range.

Maintenance and/or Repair Fees: Generally, these fees are charged for the coordination of repairs and improvements or dispatching service vendors to protect your asset. These fees can range widely, but you will need to consider the repercussion of not having these types of services performed. Other property managers may or may not charge the maintenance fee, however, they also may not carefully oversee these work orders. Again, a question to ask on the front end. Property management companies either utilize preferred vendor lists or have maintenance / repair personnel on their team. In either scenario, the price you stand to pay will most times be more cost effective then engaging a service vendor on your own.

In addition to maintenance and repair fees, you may also have fees related to advertising, lease renewals, reserve fund fees, and legal fees for evictions or complex matters. It is always a good idea to speak to the property management team upfront to discuss fees openly.