Often the first question that a property owner considering house rentals in Southwest Florida
is "how much are your fees?" This question is loaded beyond belief! SWFL Rental Network is proud to offer a transparent fee structure that works for every owner and circumstance. We provide the area's most advanced management platform and have access to vendor discounts and infrastructure no other company has... for all this we charge a very reasonable flat percentage of rent depending on the number of units and property types. Keep in mind when shopping around that you must consider all fees, not just the management fee when pricing a Cape Coral Rental Management company. There are many hidden fees being used rampantly in the market on top very low stated fees for full service property management:
Monthly Management Fees: a fair and reasonable percentage of rent collected based on property type and number of units in owner's portfolio
Placement and Renewal Fees: a nominal fee for signing new tenants or renewing existing leases and inspecting the property
Other Fees Seen in Other Firms Market:
Annual inspection fees: many companies charge a fee over and above the amount of the renewal or placement fee for the annual inspection... some will even tell you they DO NOT charge renewal fees, but then hit you with an annual inspection fee all the same.
Outside leasing fees: some companies (yes, one of the biggest in the area) claim no to charge any placement fees "Unless the unit is placed by an outside agent" unfortunately, they may not do ANY placements internally so the owners always get hit with outside placement fees!
High Tenant Application Fees: many companies charge tenants upwards of $200-250 to apply to rent your unit... they pay $35 for a background check and pocket the rest. This may not bother you at first since the tenant pays the fees, but consider this: Any cost to a tenant that is outside market norms may cost you in terms of vacancy. How would you like to lose a month or more worth of rent so your manager can pocket $200 from a tenant?
Tenant Maintenance Request Charges: We've actually seen major market players charge tenants $50+ for every maintenance call they place. Again, the owner does not see this charge impact their bottom line, however this can lead to catastrophic results. Imagine a shower has a crack in the grout and the lease has 3 months left... the tenant would gladly report the issue, however they do not want to pay $50 for making the call so they let it go as they are leaving soon anyway. Now, they move out and the owner has $800 in water damage behind the wall to deal with and possible mold issue for the sake of $1.00 worth of grout or caulk.
Markups on Maintenance or work performed: Imagine paying a monthly management fee and then getting charged every time the manager actually has to do something besides cash a check... seems crazy to us too, but it happens all the time. Most Cape Coral Rental Management companies mark up all work performed by 10-25% for making the phone call or get kickbacks you don't see from the vendors. SWFL Rental Network passes along all discounts we receive from vendors due to volume and NEVER marks up a repair. All invoices are scanned and available any time online via your owner's portal
Below Market Rents: Ok, so this isn't a charge, but if your manager under rents your property it's like paying them every month for a mistake!
Make sure you understand all the costs associated with a management company before you sign. If their management agreement references an owner’s handbook read that too... it may contain hidden costs!