How much do property managers charge uk

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How Much Does Property Management
Cost?

A simple guide to property management costs and
fees

Visit any short-term let or Airbnb property management company website, and the
simplicity of their pricing looks too good to be true—but, is it?

Generally, the majority of these management companies present options in a 3-tier system.

The bottom end rate aims to help clients list properties and boost rentals. Their standard
rate covers the more typical service, and a premium option will include an array of added
extras.

But what do they include? There are many benefits to employing a dedicated property
manager, but do they offer value for money? The following page shows how property
owners are rewarded with a healthy return on their investment, and without having to do any
of the hard work.

What is property management?

A property management company takes over the running of your investment. They will
include a wide range of services from business to business. The bulk of the short-term let
companies, however, will take over almost every aspect of leasing your property.

What does a property manager do?

If you choose them to—they’ll do everything.

Advertise and market the property
Oversee the upkeep and maintenance
Organise changeovers
Meet and greet guests
Take care of laundry
Cleaning
Make repairs
Carry out updates and more

Carry out updates and more. EN
Try to imagine every aspect of runninOgwyonuerrpsroperty reBntuasl,inanedssthTarta’svwehllaet rtshey do. UpperKey Blog

Sounds brilliant, doesn’t it? Well, if you let us take care of your property for you—it is.

How much does a property manager cost?

A property management service can cost anywhere from 12% to 25% of your rental rate.

You need to be on the ball to understand just what you’ll get for your chosen rate. Some
companies will bump up a low rate with additional services. Others will offer an all-
encompassing option and include everything you can think of.

One significant advantage to utilising a professional service is that they could help to
increase the rental rate of your property. By managing its advertising over a multitude of
platforms, and increasing the desire for guests to your property with professional imagery
and presentation, they will charge more for each stay yet still keep it fully occupied year-
round.

In such cases, the additional funds accrued can cover part or all of the management costs.
You could be making the same profit but without doing any of the work.

Do property management companies pay for repairs
and any other associated costs?

Yes, more often than not, they’ll take care of the property as if it were their own. You’ll have
to discuss your contract and its terms, but most reputable management outfits will include
everything.

Here at UpperKey, we take care of every last detail, however small, and we guarantee to pay
your rent every month, whether there are tenants in the property or not.

The majority of managers take a cut from each booking. Choosing this type of option can
leave you susceptible to an empty property and gaps in your income.

Considerations to property management costs

Of course, with rates that directly linked to rental prices, how much you can charge for a
stay, and subsequently pay a manager, will depend on a number of factors.

Is your property a house, a villa, an apartment or flat?
What sort of condition is it in? Premium apartments fetch premium rates.
City centre locations and those in high demand areas will achieve better returns than
those in remote, less popular areas.
The level of service available. From all-in to more basic marketing or rent collection
options.

A few examples of what might constitute inclusive or

additional fees Owners Business Travellers UpperKey Blog EN

Set up fees

A one-off set up fee may be involved with some companies. Generally, where charged, it
can cover an initial inspection, or handling a take-over where a high-street property manager
is employed to manage a long-term tenancy.

Monthly management fees

As mentioned earlier, a property manager handling short-term lettings in tourism-centric
apartments and houses will charge between 12–25%.

A high-street residential property manager’s fees could be as low as 10%, but the role
typically covers a less-demanding array of services.

Maintenance fees

For short-term letting offering an all-in arrangement, all maintenance is included in the
majority of cases.

For the long-term tenant/let manager, maintenances fees are often included as part of the
management fee. The services won’t perhaps be as inclusive but may feature elements such
as cleaning, property care and repair work. A fund is usually provided to cover such costs, or
alternatively passed directly to the owner.

Tenant/guest placement fees

With holiday or short-term apartment managements, your guest placement is included in the
service.

For long-term residential property management, having to replace a tenant isn’t something
they’d expect to have to take care of on a regular basis. The fee will include advertising,
screening, tenant checks and deposit management.

Eviction fees

It’s unlikely you’ll have to evict a holiday guest or short-term booking tenant, but for long-
term lets, it’s a real possibility. It’s not an easy job, so having a professional take care of
business could be worth every penny.

Early termination fees

A management company will want to recoup potential losses whenever a client breaks a
contract. The most likely breach of contract occurs when clients need to come out of the
agreement before reaching its full-term.

How much does commercial property management
cost?

Owners Business Travellers UpperKey Blog EN

Commercial property management caters for a manager or management company being
employed to handle the tenancy and occupancy of an industrial unit, office block or other
non-residential facility.

The principle is the same, and in practice very similar too. The rates too, aren’t so much
different; depending on the services included, they should range from 4–5% to 12–15%.

Some managers will utilise a fixed fee, where others offer a revenue share or flat rate fee
depending on the rent.

Guaranteed rents are also often an option for commercial properties. Sub-letting a business
property gives the manager more scope in what they can achieve when renting out
premises. Where a manager specialises in organising several short-term lets over an agreed
term or has an available stream of high-paying clientele, they can charge higher rates, with
the difference in what they charge to what they pay, being their profit.

Always read the small print

Sometimes a good deal is too good to be true. Yet, sometimes, it’s just a good deal. The
only way to know for sure is to be scrupulous when you’re negotiating a contract.

Owners must always be sure that they understand what they’re signing up for, and what all
the finer details mean.

We suggest choosing an established and transparent company to work with, one who hold
excellent reviews and testimonials—someone you can trust.

UpperKey is just that. We are a well-established high-end provider; proud of our premier
service and the satisfaction we deliver to every one of our clients. We offer a system that
protects property owners from spiralling costs that they might not be immediately aware of
or taken into consideration. As added incentive, we offer guaranteed rents over the typical
market rate, or a flat fee of 15% for those looking for shorter-term property management
assistance.

Owners Business Travellers UpperKey Blog EN

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