When you’re trying to select a property management company, one of the most obvious things you will look at is price.
All things being the same, you should pick the company with the lowest price. This concept sounds easier than it is. The price itself isn’t what you’re looking at. There are three areas you need to discuss with your property management company when it comes to costs and services.
Monthly Management Fee
The monthly management fee is what you pay your property manager on a regular basis for the ongoing care of your property. This is often a percentage of the rent that’s collected, or it might be a flat fee. This fee covers rent collection, responding to tenant needs, scheduling maintenance and providing you with your rental payment and monthly accounting statement.
Many property management companies will charge additional fees on top of that monthly management fee. It’s not unusual to have a vacancy fee, court fees, inspection fees and a marketing fee. These costs cover specific services provided by a management company and you need to find out what they are because they will add to the overall cost of property management.
Tenant Acquisition or Leasing Fee
When your property is vacant and the property manager is finding a tenant for you, the leasing fee will cover costs and time associated with the placement of a great renter. This includes working with vendors to prepare your property and listing it on the Multiple Listing Service (MLS). Your property manager will need to show the property and then screen potential tenants and execute the rental contract. Find out what you’ll have to pay for this leasing service.
Once you have all the different fees in front of you and they correspond with the services you need, it’s easy to pick the property manager with the lowest cost.
If you have any questions about costs or management services, please contact us at Progressive Property Management.