The structure of rental property management fees is a prime consideration when choosing the best property manager to hire. The management fees when it comes to single unit houses are broken down into three parts.
The first component is for property management before leasing. Rental management companies like Carney Properties & Investment Group
usually render services even before the lease is signed for items such as marketing programs and subsequently the contract procurement. The fees are either calculated according to the numbers of hours worked or through a monthly flat rate where all the advertising expenses sustained by the property management company will appear on the bill.
The second component of the fee is the override on the rent. This is the management company’s main cut of the fee. Usually it is approximately 6% to 10% or more of the rental price. So if the rent is $1,500 a month, $150 of the fee goes to the rental management company while the $1,350 goes to the owner.
The third part of rental management fees is for property repair. Most of these fees come as an additional charge with an overriding fee like that of the rent. This means that if the repair expenses that have been incurred was, for example $350, the renter may pay approximately $400 due to the overriding fee. When researching for rental property management companies, it is best to find flat percentage fees. The ideal rental management company offers a flat percentage rate that will cover contract management, repair and a marketing program. This makes it convenient for the owners and the management companies in terms of what to expect from one another.
At the end of the day, when the owner receives the bill, a flat rate creates no fuss and confusion in the business partnership.
Canvassing for rental management fees is indeed a huge part in shopping for a service provider for your business. It is best to look for a company with a good standing in the community and one that practices transparency in dealing with business. A great part of one’s research should be asking the right questions from the right people.
Being open and curious will bring you to the perfect choice because a good rental management company will be able to answer any of your questions and guide you through the process effortlessly. This exercise will also give you an idea of how savvy they are about their business.