|Understanding Common Property Management Costs and Fees
Once you realize that you NEED a residential property manager, the next logical question is, “What’s it going to cost?”
Unfortunately, there is no one-size-fits-all answer to that question. Property management fees can vary greatly from one property to the next because there are several variables (including the monthly rent) can change drastically from one property to the next. And while we can’t peg a specific dollar amount that you’ll pay, you can get a grasp on the overall different costs and fees associated with managing your property.
Costs will also depend upon whether you’re looking full full-service management or merely a tenant-location service only. In the first instance, we handle everything – marketing your property, screening tenants, signing leases, performing inspections, handling maintenance issues and requests and more. With tenant-location only, we simply advertise your property and screen the tenants. Once they’re moved in, you take back the reigns.
With this understanding, here are some of the common fees and costs you can anticipate:
Leasing Fees: The leasing fee is charged from the first month’s rent AFTER a tenant has been located and placed in the home. This is generally a percentage of one month’s rent. Here at Signature, we NEVER charge a leasing fee until AFTER we’ve performed our service. That means you’re not paying for a service you don’t get! This also means you can begin the residential property management process with no out of pocket costs.
Monthly Management Fees: Monthly management fees can vary, but are generally about 10% (give or take a few percentage points, based on your custom needs). This fee covers the ongoing work that is performed by your property manager, like the calls in the middle of the night if the A/C goes out, interim inspections, etc.
Renewal Fees: When your tenant’s lease is due to expire, if they’d like to say, you can save money by re-signing the lease instead of going through the work of marketing your property to locate a new tenant. The customary fee for this is 10% of one month’s rent.
Maintenance Buffers: We suggest that each rental property has a maintenance buffer reserved in the $250-300 range. This will allow for faster repairs, replacements or maintenance. You can also establish a dollar amount limit where repairs require approval before being initiated. We work with a carefully vetted list of Preferred Vendors in several different specialties and categories. However, if you have your own Vendors that you prefer to work with, this can be arranged. Maintenance costs above the maintenance buffer can be paid out of collected rents or you can send additional funds.
For a 100% customized breakdown of your the costs and fees you'd encoutner with your rental, the next step is to request a Residential Property Management Proposal. To do so, simply fill out this online form with pertinent information on your property and we'll get back in touch ASAP with a proposal and market analysis of your rental property - all at no cost or obligation to you! Best of all, if you submit yours now, we'll waive your 1st month's management fees!