Creating a comprehensive services and pricing guide for property rental management involves understanding the various fees and services that property management companies typically offer. This guide will outline the key services, their costs, and how they can vary based on the property type and the management company’s size and scope of services.
Services Overview
Property management services encompass a wide range of tasks aimed at ensuring the smooth operation of rental properties. These services include:
- Tenant Management: This involves finding and screening tenants, organizing lease agreements, collecting rent, managing maintenance issues, and handling evictions.
- Property Oversight: Ensuring the property is well-maintained, including regular inspections and addressing any issues that arise.
- Financial Administration: Managing the property’s finances, including rent collection, expense tracking, and tax filings.
- Marketing and Leasing: Advertising vacancies, screening potential tenants, and finalizing lease agreements.
Pricing Guide
Fixed Management Fees
- Fixed Management Fee: $100+ per month. This is a flat rate charged by the management company for their services.
Percentage-Based Management Fees
- Percentage-Based Management Fee: 8% – 12% of the rental price per month. This fee is calculated based on the rent collected, not due, ensuring property owners only pay for the income they receive.
One-Time Fees
- Onboarding/Set-Up Fee: $100 – $300. This fee covers the initial setup and configuration of the property management system.
- Tenant Placement Fee: $300 – $500. This fee is charged for the service of finding and securing a tenant for the property.
- Repair Reserve: $1,000 – $3,000. This is an optional fee that sets aside funds for future repairs and maintenance.
Occasional Fees
- Vacant Property Oversight: $100+ per month when the property is vacant. This fee covers the costs of marketing and showing the property to potential tenants.
- Bill Pay: $50 – $300 per month. This fee covers the cost of paying bills on behalf of the property owner.
- Lease Renewal Fee: Less than $200. This fee is charged for renewing the lease agreement with the tenant.
- Eviction: $200 – $500. This fee covers the costs associated with evicting a tenant.
- Eviction Insurance: $50 – $100 per month. This is an optional fee that provides coverage for eviction-related legal fees.
- Returned Check Fee: $25 – $50. This fee is charged for handling returned checks.
- Contract Termination Fee: $50 – $1,000. This fee is charged for terminating the lease agreement.
- Extra Duty Fees: $50+ per month. These fees cover any additional services not explicitly listed in the contract.
Additional Considerations
- Rent Due vs. Rent Collected: It’s crucial that the management fee is calculated based on rent collected, not due, to avoid paying fees for uncollected rent.
- Service Packages: Some management companies offer premium service packages at higher rates, which may include additional services like tenant recycling, maintenance of advanced amenities, and better marketing.
- Discounted Rates: For new property owners or those with few rental units, some companies offer discounted rates, which may be lower than the average but may lack some services.
This guide provides a general overview of the services and fees associated with property rental management. It’s important for property owners to carefully review any contract with a management company to ensure it meets their needs and budget.