Landlords often want to know what it really costs to have somebody professionally manage their properties. In a previous blog, we discussed the two major types of fees involved in property management. Those are the lease up fee, which is typically either a flat fee or a percentage of the first month’s rent, as well as the ongoing management fee which is also a percentage of the rent that is collected. That should cover all the costs of professional property management, but some companies will charge additional fees for different things.
At Real Estate Eight Three One, we do not charge any additional fees except for the two we have already spoken about; the lease up fee and the ongoing management fee. We do charge a potential tenant an application fee, but that’s not anything the landlord ever has to worry about. Typically, landlords want to be aware of any possible fee or cost that they might encounter that’s associated with the care of their property, and that’s understandable. Make sure you ask about what any charges cover when a property manager proposes additional charges. You might get charged a set up fee in addition to the lease up fee and the ongoing maintenance fee. Some property management companies will charge you for their time even when your property is vacant and there are not any tenants to manage. Some companies will also charge for overseeing renovations to the home or for doing repairs on the property.
As I said, we do not charge any of these additional fees at Real Estate Eight Three One. However, you might come across them when you are shopping around for property management companies, so make sure you ask about these additional charges while you are looking. Study your contract before you sign it so you know what you are paying for right away, and what you can expect to be paying throughout the time that you will be working with your property managers. Always find out which services are included in the fee structure and which services would cost extra. The more informed you are during your interview process, the better decision you will be able to make when finally choosing a property manager.
I hope you will be able to use this information as you look around for professional property managers for your own rental property. If we can provide any more information or assistance, please contact us at Real Estate Eight Three One and we would be happy to help.