A property manager can increase the value of your investment property by providing their professional insight, experience, and efficiency for long-lasting and sustainable success.
While property management companies do charge fees for their services, they’re often well worth the expenses, headaches, and time that comes with running your own investment property.
So what are property management fees, and what do they cover? Here are some of the most common charges and what services they might include from professional property management companies in your area.
The Leasing Fee: Finding Tenants and Lease Paperwork
The cost of marketing your unit, showing the rental property, finding and evaluating tenants, and reviewing applications in addition to drafting the lease are all services typically covered under a leasing fee.
A leasing fee usually costs between 25-100 percent of the first month’s rent and may also involve ensuring the property is ready to move in. The cost and what services the leasing fee includes will vary by company. Your property management company may also offer a flat leasing fee instead of a percentage of collected rent.
The Monthly Management Fee: Daily Tasks and Maintenance
The cost of managing your rental unit on a daily basis is often factored into what’s called a monthly management fee. Management rates range depending on the size of your building or portfolio, please contact us to discuss your property and available rates.
Some companies may also charge a flat fee rather than a percentage of the monthly rent for your investment property.
This fee is usually paid once every month and will cover maintenance, emergency maintenance, regular inspections of the property, collecting rent payments, processing rent payments, and other services as defined by your property management company.
The Onboarding Fee: Account Setup and Additional Fees
Most property management companies will charge a setup fee, sometimes called an onboarding fee, which is an initial charge to establish your relationship with the property manager and may cover an initial evaluation of the property.
Some other fees your property management company may include are:
- A vacancy fee, in the event that the property is vacant and the property manager is still maintaining the unit.
- A lease renewal fee, which is just like a leasing fee and could be a percentage or a flat rate.
- An eviction fee in the event that a tenant needs to be evicted and the property manager spends extra time and effort handling this process.
In addition, property management companies may lay claim to all or a percentage of fees associated with late charges, lease violations, and additional costs for pets.
You’ll want to closely review the terms of your relationship with your property manager to ensure you’re clear about the fees involved and what services they cover and follow up with any questions you may have.
Finding the Right Property Management Company
Are you looking for a reliable property management company in the DC area? At FAS Management, we’ve been serving Washington DC and the surrounding neighborhoods since 1946. Give us a call to find out more about our property management services at (202) 337-5080.