Managing properties is indeed a significant endeavor, often requiring a considerable amount of time and dedication. Thankfully, there are invaluable resources at our disposal that can simplify the intricacies of property management.
One of the most effective strategies is to engage the services of a proficient property manager or a distinguished property management company. These experts have the knowledge and skillset to oversee diverse aspects of your property’s management.
What Is a Property Management Company
In the vast landscape of real estate, property management companies play a crucial role, acting as intermediaries between property owners and their tenants.
Their core mission revolves around overseeing the routine operations of a property, from its upkeep and tenant interactions to its fiscal management.
Rental management companies proficiently address any challenges or conflicts that might emerge, reducing potential hazards and fostering a peaceful relationship between landlords and tenants.
For property owners who may lack the resources, knowledge, or desire to directly manage their assets, partnering with a rental management company offers a valuable solution. By tapping into the niche expertise and deep industry knowledge of these agencies, property owners can maximize their returns, while also preserving the property’s market value and standing.
Top 10 Multifamily Property Management Companies of 2023
Numerous property management firms are sizable, but which ones top the list?
Per a self-disclosed survey from Multi-Housing News, the following are the top 10 multifamily property management compaies for 2023:
- Greystar, 741,283
- Asset Living, 202,748
- Lincoln Property Co., 213,900
- Cushman & Wakefield, 178,000
- FPI Management Inc., 159,248
- RPM Living, 148,603
- Avenue5 Residential, 100,805
- WinnResidential, 105,673
- Morgan Properties, 95,219
- Bozzuto, 88,710
The list provided is sequenced based on the quantity of units each company oversees.
Top 10 Commercial Property Management Companies of 2023
Now, let’s delve into the realm of the biggest commercial property management companies.
Whilst these entities predominantly specialize in commercial properties, it’s worth noting that several establishments on this compilation also manage other types of properties, leading to some overlap with the previously mentioned list.
Based on extensive square footage data, sourced from a comprehensive survey conducted by the esteemed platform, Commercial Search, we present the top ten commercial property management companies (based on square footage, by the millions):
- CBRE, 7,300.00
- Cushman & Wakefield, 5,099.00
- JLL, 3,000.00
- Colliers, 2,263.33
- Avison Young, 283.15
- Lincoln Property Co., 276.00
- Newmark, 215.78
- The RMR Group, 114.35
- Stream Realty Partners, 158.97
- Transwestern Real Estate Services, 157.92
How Much Do Property Management Companies Charge
Property management companies typically employ various fee structures. They might levy a fee based on a proportion of the rent, impose a set charge, or determine costs on a project-by-project basis. The chosen payment method often hinges on the manager’s preference and the unique aspects of the rental property they’re handling.
Many companies typically impose a monthly fee that hovers between 8% and 12% of the rent. To put this into perspective, if your property fetches a rent of $1,500 each month, you’re looking at a management fee somewhere in the ballpark of $120 to $180..
That said, there’s a twist. Some of these companies might give your wallet a break if your property is unoccupied, choosing not to charge any fee. On the flip side, others might slap on a fixed charge for empty units or even a fee mirroring the monthly rent, regardless of whether there’s a tenant or not.
When determining the cost of property management services, many turn to a flat-fee structure. This pricing model considers various aspects, including the property’s type, its size, its condition, and the specific management tasks required.
It’s a common suggestion to budget around $100 for managing a single-family home using a flat-fee system. However, remember that the actual costs can fluctuate based on the local market and the rental agency you’re considering. If you’re leaning towards an agency that charges a flat fee, it’s wise to ask for a thorough breakdown of the services they’ll provide for that fee. This ensures that they’ll manage and upkeep your property to your desired standards.
Per-project property management
Property management companies juggle a myriad of services. When you choose a per-project hiring model, it grants you the freedom to decide which landlord tasks you’d like the firm to oversee. This could range from seeking their help for sporadic maintenance jobs to delegating specific tenant management chores. In such an arrangement, you’ll be invoiced for each task they complete. However, it’s worth noting that the costs under this model might oscillate and often end up being pricier per task than if you were to opt for a flat fee or a percentage-based pricing system.