Property management fees are a standard part of working with a property manager. Here’s what to expect.
A property management company can help you to manage your rental property with ease, but this does come with a price tag. Property management fees are an expected part of working with a property manager, but you might be curious about what these fees really cover. The money that you pay to a property manager actually covers a few things. In this article, we will explore this in more detail.
Property Management Fees: A Guide
Property management fees are any fees that you pay to your property management company. Depending on the agreement that you have with your company, these fees might look different. Some property managers offer different services compared to others, so the fee breakdown will always be unique. In general, the associated fees are what you will be paying for the property manager to manage your property.
Providing Services
Given all of the benefits that come with working with a property manager, it shouldn’t come as a surprise that property managers have a cost associated with their services. Your fees will primarily be covering the cost of working with your property manager. This might include staffing hours and any services that your property manager is offering you. This is the most common cost, and it is generally taken as a set percentage of the rent your tenants are paying. It can also vary depending on the size of the property or the number of tenants.
Business Expenses
It takes a good amount of funding to keep a property in good order, and some fees might include these business expenses. Fees could be for agreements with third-party vendors or external services that the property manager is handling for you. Depending on what needs your property has, this can look different. It might involve anything from landscaping to pool maintenance—or a property management company might have you handle these fees directly.
System Expenses
Some property managers use dedicated systems to make managing property much easier—but these systems do have a user cost. A good property management system can easily expedite processes for your property and help your on-site staff to succeed. Any time that you make the decision to work with a property manager’s unique systems, you can expect an associated cost in most cases. This might be a subscription—and, once again, it might be paid directly to the service provider.
The Takeaway
Property managers drastically improve properties, giving peace of mind to property owners and meeting the needs of their tenants. Their fees help them to provide you with the services that will make your property the best place for new tenants to move to. With a good property manager, the difference really shows in the good reviews. We are an Aurora property management company that is ready to help you take your property to the next level, so feel free to contact us directly to get started.