Don’t let property management fees intimidate you. Although property management companies do charge some fees, they’re not as confusing as some might think. These fees are set up so that an Aurora property management company can handle all aspects of the property. This takes the stress out of managing multiple properties and tenants.
The landowner is responsible for paying these fees to the property management company. Some landowners offset costs by dividing up fees between the tenant’s rental contracts. The amount of monthly fees included in a rental property contract vary depending on the landowner’s needs. Let’s take a look at how these fees are calculated and what they entail.
What Is a Management Fee?
Paid by landowners, the management fee is the primary payment collected by a property management company. Depending on the contract, it will either be a flat fee or a percentage of the overall rent. It covers a variety of day-to-day management duties, including:
- Rent collection and processing
- Tenant communication and emergencies
- Maintenance and repairs
- Annual property inspections
Oftentimes these management services are bundled with a singular fee, making it easy to sign up immediately. Check with your Aurora property management company for a-la-carte services or additional assistance.
A key item to pay attention to in the management agreement is the language surrounding fee payout. Ensure that the payment agreement is based on “rent collected”. This guarantees that you aren’t paying out management fees when there are no tenants or rental income.
Property Management Fee Factors
Not all property management companies charge the same amount of fees. However, there are a few common factors that help calculate costs. These include:
- Property type and location
Investment properties are often categorized by type. A single-family home will have different management needs than multi-family or commercial properties. Additionally, fees change depending on location. Management fees reflect areas with higher demand or higher rent.
- Property size
Fees increase depending on the size of the property. This is because there’s more work that goes into running a larger property rental. More units and tenants require more attention and maintenance.
- Property condition
Older properties that require more yearly maintenance also have higher management fees. A management company will adjust fees depending on the property condition and renovation needs.
- What services you need
An Aurora property management company can be as hands-on as you need them to be. Fees reflect the management services required each month by the rental units. You’ll pay less fees if you only need rent collection compared to a full list of services.
Aurora Property Management Company
For property owners, managing multiple units can be stressful. There are many daily duties that require attention. This is especially difficult for those property owners who live out of town or aren’t available 24/7. Luckily, our Aurora property management company can help. Our package of management services ranges from rent collection and processing to tenant communication and maintenance scheduling. It’s your choice how hands-on you’d like to be with your rental properties. To discuss management fees and services, contact our team of property management professionals.