The property management company serves as a liaison between the tenants and oneself. One has to make sure that one is getting the value of the money for the services provided by the company. The package offered by the property management company can either be all-inclusive-package or ala carte and with it comes the associated fees. Before hiring a property management company one should know the different fees structures.
Lease-Up or Set-Up fee
In this kind of fee the first rent payment is usually made to the property manager partly or as onetime payment and it is non-refundable for the physical work done by him for placing a tenant on the property.
To compensate the property manager looking after the property the owner pays a monthly fees varying from 3% to 15% of the gross rent. Most management companies usually charge a flat fee varies from $ 50 to over $ 200.
According to the property management contract the advertising cost can either be made by the company, by the owner or it can be split up between the two parties. Lease-up fee or set-up fee will be charged if the property manager covers the overall cost stated above. Then one should know the type of cost involved otherwise one will not get the value of the property. One can also use the net for bringing in tenants. One can also use yard-signs, print media, an open-house or listing on the MLS.
Lease Renewal fee
The property manager charges a fee for the paperwork and communication involved for the renewal of the lease or end year inspection fee for $ 200 and above and charged every time for renewal.
Maintenance Mark-up fee
In this type of fee the property manager charges the tenant when using the in-house staff or vendor for repairing or replacement of items at a percentage of extra 10% to the actual cost involved.
Early Cancellation fee
If the owner is unsatisfied with the property manager then the deal can be canceled but for a fee of $ 500. Other fees involved may be minute but can create a deep hole when paying for it.
Before embarking on the sale of the house lot of property management should be communicated so that the contract can be negotiated.
Details of property management can be found online which gives up-to date detailed information on the full service. This joins a lot of businesses ranging from residential to commercial.
The Property management being a store house of information the seasoned investors as well as the first time landlord can make use of the information as they are able to understand the problems faced.