#propertymanagementcompanyinchicago

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How Much is Property Management Fee in Chicago?

Meet Sarah, a first-time real estate investor in Chicago. She had recently purchased a multi-unit building in the heart of the city.

While the property had a lot of potential, Sarah knew she needed professional help to manage it effectively.

So, she decided to hire a property management company in Chicago.

But before she could sign the contract, she had one big question: "How much will this cost me?"

After speaking with a few Chicago property managers, Sarah learned that property management fees in Chicago can vary based on several factors.

Let’s break down what Sarah found out.

1. What Does Property Management Fee Cover?

Sarah was surprised to learn that the property management fee wasn’t just for collecting rent.

Here’s a breakdown of what it typically includes:

Tenant Screening: The property manager handles background checks, credit checks, and selecting qualified tenants.

Maintenance and Repairs: They manage regular maintenance and handle emergency repairs.

Rent Collection: They ensure that rent is collected on time and follow up with late payments.

Marketing and Advertising: If there are vacancies, they handle the advertising and showing of units.

Lease Management: They create, manage, and renew leases with tenants.

2. How Much Does a Property Management Company Charge?

Sarah found that most property management services in Chicago charge between 8% to 12% of the monthly rent.

For example, if her building earned $3,000 in rent each month, she could expect to pay between $240 and $360 in management fees.

Tip: Always ask for a breakdown of fees. Some companies may offer additional services, such as accounting or eviction management, for extra charges.

3. Are There Additional Fees?

Sarah learned that while the base management fee is the biggest cost, there are sometimes extra charges. These can include:

Leasing Fees: This covers finding and signing a new tenant, often ranging from 50% to 100% of one month’s rent.

Maintenance Fees: Some property managers charge a markup on repairs or maintenance services.

Eviction Fees: If you need to evict a tenant, there could be additional legal and administrative costs.

4. Is it Worth It?

At first, Sarah was concerned about the cost, but after learning about the benefits of working with professional Chicago property managers, she realized it was worth the investment.

A good property manager can save time, reduce stress, and ultimately help her make more money by keeping her property well-maintained and tenants satisfied.

Answer: Yes, hiring a property management company can be a wise choice if you want to maximize your investment.

By the end of her research, Sarah felt confident in her decision to partner with a property management company in Chicago.

The fees were manageable, and the peace of mind she gained from knowing her property was in expert hands was priceless.