How much does it cost?
Every property is different, and we will assess them when we walkthrough your property together. Below are general costs so that you can gauge what it may cost. The costs may fluctuate up or down depending on various factors that may increase the amount of time required to manage the property.
- Management Fee: 10% of annual rental income for property management.
- Leasing Fee: One month rent when a vacant unit is rented. Half month rent when the tenant remains each year after that.
This is just a ball park for your estimates. The actual calculations will be provided in your proposal.
What to consider when choosing a property manager
Watch out for management fees that seem too low. It may be a good indication that the property managers are stretched thin and may not manage your property well. Poor management can lead to unhappy tenants, which leads to higher turnover and more extended vacancies without rental income.
Watch out for leasing fees that seem too low.
Watch out for property managers who charge no management fees when the unit is vacant Though it may seem that you are saving money this way, this is actually a trap. It is in your best interest to get a good tenant who takes care of your property as you would and pays on time. When a tenant leaves, the property manager must make the unit rent-ready. Then, s/he must show the property and adequately screen the tenants. A leasing office that makes promises at a lower fee or to do it faster may signal that they will get anyone in quickly to collect the fee and leave you with the mess of a bad tenant.
Watch out for management companies that do not provide a cancellation of agreement with 30-day notice. Some property management companies request long-term management contracts that cannot be canceled or only with a tremendous fee. Though they may take care of your property upfront, you would have no recourse for their services deterioration. Instead, ensure that the property management company you work with puts in the ability for you to cancel contracts with a 30 day written notice.
Do you have any questions? Contact us below