How Much Do Property Management Companies Charge to Manage HOA?
If you are a homeowner, then you may have heard about a property management company. A property management company will handle the daily operations of your homeowner association (HOA) and ensure that your property runs smoothly. However, the question that arises here is how much do property management companies charge to manage HOA? Let’s dive into the details.
First and foremost, it’s important to note that there is no fixed rate for property management services. The cost varies depending on several factors such as the size of the property, the number of units, location, and the services provided by the management company.
Typically, a property management company will charge a flat rate per unit or a percentage of the total amount collected in monthly fees. For instance, a property management company can charge between 5-10% of the monthly fee collected from each unit. However, the rate can vary depending on the type of services offered by the property management company.
Some of the services provided by a property management company include collecting and depositing monthly dues, responding to resident complaints, handling maintenance requests, enforcing the rules and regulations of the association, and providing financial reports to the board of directors.
In addition to the monthly fee, some property management companies may charge additional fees for services such as unit rental and leasing. Such fees may range from 50-100% of the first month’s rent or a percentage of the monthly rent collected.
It’s worth noting that some property management companies may also charge a one-time setup fee to cover the cost of establishing an account or transferring the management of the association.
In conclusion, the cost of property management services varies depending on the size of the property, the location, and the services provided by the management company. Before hiring a property management company, it’s essential to research the rates in your area and compare them to ensure that you get the best value for your money.
Hopefully, this article has given you a better understanding of how much property management companies charge to manage HOA. Contact one of the property management companies near you to get more details.