How Much Does Property Management Cost in Virginia Beach & Hampton Roads?
Property management fees are important, but the percentage alone does not tell you what management will actually cost.
Owners should look at the complete fee structure: the monthly management fee, leasing costs, renewal charges, maintenance markups, administrative fees, and—most importantly—what services are actually included.
Coastal Group provides property management services throughout Virginia Beach, Norfolk, Chesapeake and the surrounding Hampton Roads area. Our goal is straightforward pricing that an owner can understand before signing a management agreement.
If you would like us to evaluate your property, call 757-233-9595 or request a rental-property analysis through our Virginia Beach Property Management page.
How Property Management Fees Work
Most full-service property management arrangements have two basic components.
Monthly Management Fee
The monthly management fee covers the ongoing work of managing the property, collecting rent, communicating with tenants, coordinating maintenance, maintaining records and overseeing the lease.
Leasing or Tenant-Placement Fee
A leasing or tenant-placement fee compensates the real estate professionals involved in marketing the property, responding to inquiries, coordinating showings, processing applicants and completing the leasing process.
The exact management fee can vary because a single-family home, condominium, duplex and larger rental portfolio do not require exactly the same level of management.
Rather than treating every property as identical, we review the property and the owner's needs before quoting the management fee.
What Determines Your Management Fee?
Several factors can affect property management pricing.
Property Type
A newer single-family home may require a different level of management from an older duplex, condominium or small multifamily building.
Number of Properties
Owners with several rental properties may qualify for portfolio pricing because multiple properties can often be managed more efficiently together.
Property Condition
A well-maintained property with updated systems may generate fewer maintenance issues than an older property requiring frequent service and coordination.
Location
Rental conditions and management requirements can vary by city and neighborhood.
Owners can learn more about our approach in:
Virginia Beach Property Management
Chesapeake Property Management
Management Requirements
Some owners need complete management because they live out of state or overseas. Others live locally but want professional leasing, rent collection, maintenance coordination and tenant management.
We discuss those needs before quoting the management fee.
Look Beyond the Percentage
Suppose one property manager advertises a lower monthly percentage than another.
That does not necessarily mean the total cost is lower.
Before choosing a management company, ask whether there are additional charges for:
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Setting up the account
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Marketing the property
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Finding a tenant
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Preparing the lease
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Renewing the lease
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Property inspections
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Maintenance coordination
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Maintenance invoice markups
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Owner statements
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Notices to tenants
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Year-end accounting
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Closing or terminating the account
The best comparison is not simply:
“What percentage do you charge?”
A better question is:
“What will I actually pay during a normal year of property management, and what services are included?”
What Is Included in Coastal Group Property Management?
Our full-service property management is designed to handle the routine work an owner would otherwise have to manage personally.
Rent Collection and Accounting
We collect rent, maintain tenant ledgers, process owner disbursements and provide regular financial reporting.
You can read more about our rent collection process.
Tenant Communication
Our team handles routine tenant questions, requests and lease-related communication so owners do not have to serve as the day-to-day contact.
Maintenance Coordination
We receive maintenance requests, determine the appropriate response and coordinate qualified local vendors when repairs are necessary.
Lease Administration
We prepare and administer leases, monitor expiration dates and work with owners on renewal decisions and rental pricing.
Tenant Screening
Applicants are evaluated using established screening procedures designed to help identify qualified residents and reduce avoidable risk.
Read more about our tenant screening process.
Property Oversight
We help owners identify maintenance, lease and occupancy issues before they become larger problems.
Leasing and Finding the Right Tenant
The cost of management should also be considered alongside the cost of vacancy and tenant turnover.
A property that rents for slightly more but sits vacant for several additional weeks can produce less annual income than a correctly priced property that rents promptly.
That is why rental pricing should consider current market conditions, comparable rentals, property condition, competing listings and actual tenant interest.
Our guide, How to Maximize Rental Income in Hampton Roads, explains why maximizing annual income is often more important than simply obtaining the highest advertised monthly rent.
Broad marketing and careful tenant screening are also important parts of the leasing process.
What Should an Owner Compare Between Property Managers?
Before signing a management agreement, we recommend comparing at least these items.
1. Monthly Management Fee
Is the fee based on rent collected or rent charged?
2. Leasing Fee
What does the owner pay when a new tenant is placed?
3. Renewal Fee
Is there a separate charge when an existing tenant renews?
4. Setup and Administrative Fees
Are there separate charges for opening or maintaining the account?
5. Maintenance Charges
Does the management company add a markup to contractors' invoices?
6. Inspection Charges
Are routine property inspections included or billed separately?
7. Marketing Exposure
Where will the property be advertised, and does the management company cooperate with other real estate professionals?
8. Tenant Screening
What financial, rental-history and other lawful screening standards are applied?
Learn more about our tenant screening services.
9. Accounting and Reporting
How often are owners paid, and what reports are provided?
10. Local Management
Who actually responds when a tenant, contractor or property problem requires attention?
A small difference in an advertised percentage may be much less important than the answers to these questions.
The Cost of Managing a Rental Yourself
Owners sometimes compare a professional management fee with a cost of zero for self-management.
In practice, self-management also has costs.
Those can include advertising, showing the property, screening applicants, preparing leases, collecting late rent, handling accounting, responding to maintenance calls, coordinating vendors, inspecting the property and keeping up with Virginia landlord-tenant requirements.
There is also the owner's time.
Professional management makes the most sense when the value of having someone else consistently handle those responsibilities exceeds the management cost.
For an owner who lives outside Hampton Roads, owns several properties or simply does not want another part-time job, that calculation can be especially important.
How Much Should Your Property Rent For?
Management cost is only one part of rental profitability.
The larger questions are:
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What will the property realistically rent for?
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How quickly should it rent?
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What improvements might increase its rental value?
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How does the current rent compare with today's market?
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Would renewing the existing tenant be more profitable than turning the property over?
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Would renting or selling make more sense for the owner's longer-term plans?
Our article on maximizing rental income in Hampton Roads discusses these questions in more detail.
Owners can also review our local market approach for Virginia Beach, Norfolk and Chesapeake.
Property Management Fees for Multiple Properties
If you own several rental properties, ask us to review the portfolio together.
The number of units, locations, condition and management requirements can affect the appropriate fee structure. Portfolio pricing may be available when multiple properties can be managed efficiently under one account.
We work with individual owners as well as investors with multiple rental properties throughout Hampton Roads.
Frequently Asked Questions
What is the typical property management fee in Virginia Beach?
Property management pricing varies by company, property type and services included.
Some companies charge primarily a monthly percentage while others add leasing, renewal, setup, inspection, administrative or maintenance-related charges.
For that reason, compare the total fee structure, not just the advertised percentage.
Is the management fee charged when the property is vacant?
The management agreement should clearly state when the monthly management fee applies and how it is calculated.
We explain the fee structure before you sign so you understand how it works during both occupied and vacant periods.
Is there a separate cost to find a tenant?
Tenant placement commonly involves a separate leasing commission or leasing fee.
That cost should be explained as part of the management proposal before the property is marketed.
Do owners with several properties receive different pricing?
They may.
Multiple properties or units can sometimes be managed more efficiently, so portfolio pricing can be reviewed individually.
Are property management fees tax deductible?
Property management expenses associated with an income-producing rental property may generally qualify as rental operating expenses.
Tax treatment depends on the owner's individual circumstances, so owners should confirm deductibility with their CPA or tax professional.
Do you handle tenant screening?
Yes.
Tenant screening is an important part of the leasing process and may include review of credit, income, employment, rental history and other permitted qualification criteria.
See our full Tenant Screening Services page.
Do you handle rent collection?
Yes.
Rent collection, tenant ledgers, owner accounting and follow-up on unpaid balances are part of full-service management.
Learn more about our Rent Collection Services.
Get a Property Management Quote
The easiest way to determine the management cost is to let us look at the actual property.
We will consider the property type, location, condition, expected rent and the services you need and provide a straightforward proposal.
There is no obligation to move forward.
For local information, visit:
Virginia Beach Property Management
Chesapeake Property Management
Or review our complete Property Management Services.
Coastal Group Inc. Realtors
Virginia Beach, Virginia
757-233-9595
Serving rental-property owners throughout Virginia Beach, Norfolk, Chesapeake and the surrounding Hampton Roads area.