Understanding Property Management Fees
Ever wondered how much you can expect to pay a property manager for your rental?! We’re breaking down the difference in property management fees so you can make informed decisions for your real estate portfolio. Let’s check them out!
#1 LTR - Long term Rental
A LTR is the most “passive” of all rental strategies. When setting up an LTR, you are leasing or renting a property for an extended period, usually with a lease that’s 12+ months long. A LTR is typically an unfurnished property and the tenant is responsible for furnishing the space.
When hiring out a property management company for your LTR property, you can expect to pay a property manager around 10% of gross rent.
If you don’t want to give away money to a property management company, you can always self-manage your own properties. Self-managing your own real estate rental properties doesn't have to be complicated. With our Property Management Academy, you can learn how to self-manage your own properties and save thousands of dollars. Click here to check it out!
#2 MTR - Midterm Rental
An MTR typically refers to “Travel Nurse Housing” or “Corporate Rentals”. Midterm rentals are often sought after by individuals or businesses that need temporary accommodations for a specific period of time but don't require a long-term commitment.
In most cases, MTRs are furnished units that are rented on a month to month basis.
Need help furnishing your MTR unit? Grab our free MTR Furnishing Guide so you don’t miss out on any of the essentials!
When hiring out a property management company for your MTR property, you can expect to pay a property manager around 15% of gross rent.
#3 STR - Short term Rental
STRs are typically thought of as “vacation rentals,” and it’s when you temporarily rent a property for a few days and up to a few weeks. Short-term rentals have become increasingly popular, particularly with the rise of online platforms like Airbnb, VRBO, and Booking.com.
STRs are always furnished and often include nice amenities to attract guests.
When hiring out a property management company for your STR property, you can expect to pay a property manager around 20% of gross rent.
If you want to self-manage your own STR or MTR, we recommend checking out Hospitable! With Hospitable’s easy to use property management software, you can automate tasks, collect rent, and avoid double bookings. Sign up for 14-day free trial and get 25% off for 3 months by clicking here.
Understanding the nuances of property management fees is crucial for maximizing the profitability of your real estate investments. Whether you opt for a long-term rental (LTR), midterm rental (MTR), or short-term rental (STR) strategy, knowing what to expect in terms of property management costs empowers you to make informed decisions. Remember, with the right tools, you can always self-manage your LTRs, MTRs, or STRs! Check out our resources below to get started.
RESOURCES:
Join the Property Management Academy to learn how to self-manage your rental properties
Grab our free MTR Furnishing Guide
Get 14-day free trial and 25% off for 3 months with Hospitable
Listen to the WIIRE Podcast and leave us a review :)
Join WIIRE’s free + private Facebook Group