Property Management Fees Alabama

Before you hire a rental manager, you need to know about property management fees in Alabama. Otherwise, you could pay more than you initially anticipated.

Unless your management company charges a flat rate or you use free landlord software like TurboTenant, it’s not easy to get a clear sense of how much you’ll pay each month. Aside from monthly management fees, additional itemized charges may apply depending on your specific situation.

These added charges vary depending on the tasks the manager performed during the month, such as:

• Renewing a tenant’s lease.
• Conducting property inspections.
• Securing a new tenant.

To help you find the best solution for your landlord business, here’s an overview of the property management fees Alabama rental owners typically pay:

Common Costs 

Many companies apply the same property management fees in Alabama. However, the average costs may differ depending on your listing’s location. In the first month, there’s usually a one-time cost for account setup. Then there’s a monthly management charge based on the rent. If the manager performs tasks outside of the general package, additional charges may apply.

Here’s a quick recap of the different property management fees Alabama landlords can expect:

Monthly Management Fees

Some property management companies offer a flat monthly rate, which is excellent for budgeting. However, most companies charge landlords a percentage of the unit’s rent. Here’s what most management rates include:

• Daily operations
• Rent collection
• Tenant communication
• Leasing management
• Move-in/move-out coordination

Average price in Alabama: 8%–12% of 1 month’s rent

Tenant Placement

Finding qualified tenants for your available units is one of the many responsibilities a manager undertakes. Tenant placement includes the work needed to fill your vacancy, including:

• Property advertising
• Rental showings
• Rental applications
• Leasing prep
• Applicant communication

Average price in Alabama: 50% to 100% of 1 month’s rent

Annual Inspection Costs

Rental managers help keep your unit in a safe and habitable condition by overseeing routine inspections, such as the annual safety and unit condition inspections. They’ll also inspect the rental property when a tenant moves in or out.

If your local area requires specific inspections, the manager adds them to their to-do list. Based on the inspection report, they’ll perform preventative maintenance.

Average price in Alabama: $100 per inspection

Maintenance

When your tenant submits a maintenance request, managers oversee the repair process. Since managers charge a markup directly on the vendor’s invoice, larger repair projects incur higher maintenance fees than quick fixes.

As part of the service, companies respond to tenant requests, then hire a contractor to complete the work. Once they find the right vendor, they’ll coordinate with tenants to schedule the repair.

Average price in Alabama: 10% to 15% markup on the repair cost

Lease Renewal

If your existing tenant is ready to sign a new lease agreement, rental managers oversee the renewal process by:

• Communicating with the landlord and tenants
• Filing any required paperwork
• Updating the rental agreement
• Obtaining the landlord’s and tenant’s signatures

Average price in Alabama: 25%–75% of 1 month’s rent

Eviction Costs

If you need to evict a tenant, management companies do the heavy lifting for you. Eviction costs can be among the most unpredictable in property management. Each situation is unique, which determines how much time the manager will need to spend on the eviction. In addition to this charge, landlords must also pay all court costs.

While the exact tasks vary based on the eviction, the rate typically includes:

• Attending court
• Submitting paperwork
• Ensuring tenants vacate the unit

Average price in Alabama: $200 to $500+ plus court costs

Vacancy Charges

While a property manager works to fill your vacancy, they also need to check in on the empty unit. They’ll make sure the property is secure, clean, and well-maintained. If there’s an impending emergency, like when a storm rolls through, they’ll address it and prepare the property.

Average price in Alabama: $50 to $200 per month

Costs in Popular Alabama Cities 

To help you understand how costs can vary based on your listing’s location, let’s compare the numbers in five of Alabama’s top cities.

#1. Huntsville

• 8%–10% of 1 month’s rent for monthly management
• 50%–100% of 1 month’s rent for tenant placement
• $200–$500 for lease renewals 
• 10%–25% of vendor cost for maintenance

#2. Birmingham

• 10% of 1 month’s rent for monthly management 
• 50%–100% of 1 month’s rent for tenant placement
• $250–$375 for lease renewals 
• 10%–25% of vendor cost for maintenance

#3. Montgomery

• 8%–12% of 1 month’s rent for monthly management 
• 50% of 1 month’s rent for tenant placement
• 25%–50% of 1 month’s rent for lease renewals 
• 10%–20% of vendor cost for maintenance

#4. Mobile

• 8%–12% of 1 month’s rent for monthly management
• 50%–100% of 1 month’s rent for tenant placement
• $200–$500 for lease renewals 
• 10%–15% of vendor cost for maintenance

#5. Tuscaloosa

• 8%–12% of 1 month’s rent for monthly management 
• 50%–100% of 1 month’s rent for tenant placement
• 25%–50% of 1 month’s rent for lease renewals 
• 10%–25% of vendor cost for maintenance

The Final Word

After reviewing the costs of hiring a property management company, you may wonder about your other options.

If you’re not ready to pay a monthly fee based on rent plus additional charges, try to find a company with an all-inclusive flat rate. Alternatively, consider self-managing with TurboTenant. Our free online software streamlines property management without the added expenses. Sign up today!

Alabama Property Management Fees FAQs