Property management fees are going to vary depending on factors, such as how many properties you’re asking a company to manage, whether they’re single-family homes or multi-family units, and the scope of services you’ll need. Each management company structures their fees in their own way. You might find yourself paying an all-inclusive flat fee or a percentage of the rent that’s collected. You might have options to add upgraded services to the regular list of tasks that a property manager performs.
When you’re looking for professional Auburn property management, make sure you’re comparing services and value as well as price.
While fees and price structures are different, there are a few things you can count on when you’re evaluating property management costs.
Auburn Leasing Fees
The leasing fee is what you’ll pay for a property management company to market your home and find a suitable tenant. Most management companies will charge you a percentage of the first month’s rent. It might also be the cost of a full month’s rent. Or, a flat fee will be charged such as $100 or $250 or $500.
The leasing fee should cover the following:
- Advertising your property online
- Showing your property
- Conducting a comparable analysis to accurately price your property
- Screening applications
- Reviewing, negotiating, and executing lease agreements
- Collecting security deposits and other move-in funds
- Inspecting the property prior to move-in
Some companies with a low leasing fee might charge extra for advertising. Make sure you understand what you’re paying for. The leasing fee should only be paid once during a lease term; when the property moves from unoccupied to occupied.
Auburn Property Management Fees
The management fee will be paid every month. Most property management companies will deduct their fee from the rent before they forward it to you. The amount you pay could be as low as 8 percent of your rental income and as much as 12 percent. Again – it’s important that you know what you’re paying for. The 12 percent fee may seem high, but if it includes everything, you might ultimately be paying less than you would if you were paying 8 percent every month but then you also have to pay a fee for accounting statements, inspections, and lease renewals.
A good management company will be transparent with accounting. You should always know how much you’re paying and what you’re paying for. The income and expenses associated with your property should always be available to you. Make sure you’re receiving a statement every month when rent is paid and your management fee is deducted.
Potential Additional Fees
The leasing fee and management fee are pretty standard. Some companies will charge additional fees such as administrative fees, technology fees, account set-up fees, inspection fees, accounting fees, etc. Other companies will also charge a maintenance mark-up, which may increase the amount of your repair invoices.
The important thing is that all the costs are explained to you before you sign a management agreement.
If you’d like more information about property management fees or you’re curious about what we charge our clients, contact us at People’s Real Estate.