Web Admin – Thursday, August 01, 2013
In this blog, we are talking about fees and services when it comes to your property management company. The first thing you need to think about is exactly what the title says; what services are being provided for the fees a property manager is charging?
There are several general services that most property management companies will charge you for, starting with a lease up fee. The lease up fee includes placing a tenant in the property. The fee covers screening applicants, conducting a thorough background check, signing the lease and getting the tenant settled in the property. Your lease up fee may be half the first month’s rent or a full month’s rent. It usually depends on the type of property you are renting.
The second major fee that you can expect is a management fee. This covers the ongoing maintenance of the property on your behalf. This fee is often a percentage of the rent you are charging. The cost can run anywhere from eight percent to 12 percent of the monthly rent that is collected. This fee will also be predicated on the type of property you own. There will be a different fee schedule for residential, commercial and multi-unit properties.
We see a lot of property management companies charge a separate fee for inspections. You might get charged every time your property manager Fees vs. Service Salt Lake City Property Management does an inspection of the home at the time of move-in, move-out or during the lease period. At Sentinel Management Group, we choose not to charge a separate inspection fee. We consider property inspections to be part of our regular management, so we include it in our monthly fee.
Other additional fees you might notice are charges for your financial statements at the end of the year, when your property manager provides you with an accounting breakdown and a 1099 form for your tax filing records. There might also be an extra fee for advertising your property when it is vacant. These additional fees can get expensive. Look carefully at your management agreement and check for hidden fees that you might not expect.
At Sentinel Management Group, we keep things simple. We have only two fees; a lease up fee and a monthly management fee. Those fees are property-specific and so are our services. If you need any help in finding management services for your property, please contact us and we would be happy to help you in any way we can.