Propert Management Fees Breakdown
One of the most common questions we get asked on a daily basis is what are property management fees. Indeed, these fees can vary greatly depending on your rental market. So we hope to provide you a basic understanding of the cost in Bridgeport.
There are many different types of fee structures that property managers charge. Therefor, be sure that you know what is included and what is extra. There are several property management fees that are standard in most companies. Fees vary greatly depending on what services are included in the fees you pay. There are four typical fees you should look out for. Leasing fees, monthly management fees, other fees, and hidden fees.
1. Leasing Fees:
Leasing fees vary greatly between management companies. These fees can range from 25% of one month’s rent up to 100% of one month’s rent. Leasing is the most labor-intensive part of the property management process. Leasing fee should include advertising, showing a property, qualifying tenants, background and security checks, lease signing, and moving in a qualified tenant. Be sure you know what is included in a company’s leasing fee.
2. Monthly Management Fees:
Monthly management fees in Bridgeport typically range between 8-12% of monthly rents collected. This monthly management fee should always include a basic of rent collection, maintenance coordination, direct deposit, and accounting tasks. In addition, reports, 1099’s, and all other day-to-day management tasks should also be included. Plus, it is always a bonus if companies offer online portals, online rent collection, property inspections, and after-hour emergency response.
3. Other Fees:
It is ok for companies to have other transparent and reasonable fees. For example, some companies offer lower leasing fees in exchange for ala carte services being separate. However, if a company charges a lower leasing fee there may be a separate fee for professional photos or virtual tours. On the other hand, a leasing fee of an entire month’s rent will ideally include a bundle of extra features. True, some of these features might be important to you depending on the rental rate of the property or your rental market. However, a higher leasing fee is not always necessary or worth the lack of services included. Therefore, make sure you ask about fees regarding maintenance, renewals, and evictions (if necessary).
4. Hidden Fees:
Here are some fees you should be wary of: Does the company keep a portion of the security deposit? Or maybe a portion of the pet fee? Do they charge extra for reports and 1099s? What about a surcharge maintenance? Do they charge extra for after-hours calls? Also consider if there additional set-up fees. Be sure to ask what other fees are applicable and make sure you know what these fees entail. Be aware of “gimmicky” fee structures that just don’t add up. A great management company should have an all-inclusive fee schedule with a few extra services available upon request. Although, if a company’s property management fees seem too good to be true they probably are.