How much does Monroe property management cost?
This is a common question, and an important one. Before you hire a property manager, you need to understand exactly what you will pay and how you will pay. Each management company is a bit different in how they structure their fees. You’ll likely pay a percentage of your rental income or a flat fee regardless of what your property earns.
Make sure you’re asking the right questions when you’re talking about property management fees in Monroe. You don’t only want to know what you’ll pay – you want to know what kind of services and value you’ll receive in exchange for those fees.
Leasing Fees or Tenant Placement Fees
One of the first fees you are likely to run into is the one-time leasing fee at the beginning of your relationship with a property manager. Usually it’s collected when a qualified tenant has been placed in your rental property. Expect it to cost a percentage of your first month’s rent, or in some cases, even a full month’s rent. Other management companies might charge a flat fee.
Leasing fees will often include services like:
- Preparing your property for the rental market.
- Pricing your home by conducting comparative market analyses.
- Taking photographs.
- Listing your home for rent online.
- Including your home for rent on the property manager’s website.
- Showing the property and responding to inquiries from prospective tenants.
- Screening tenants.
- Reviewing and signing the lease agreement.
- Collecting the security deposit and other move-in funds.
- Conducting a complete move-in inspection with pictures and a report.
Some of these things may be extra. Professional photography, for example, might come with an extra charge.
Monroe Property Management Fees
Unlike the one-time leasing fee, ongoing property management fees are paid monthly. This fee is often a percentage of your rental amount. So, if your home rents for $2,500 and the management company charges a 10 percent fee, you pay $250 per month. Usually, your management company will deduct the amount of their fee from the rent that’s collected.
The management fees should cover everything from rent collection to maintenance. Enforcing the lease, sending notices and correspondence, managing tenant relations, and maintaining detailed and accurate accounting records are all part of what your management company should be doing in exchange for those fees.
Beware of fees that look too good to be true. A super-low management fee means one of two things: you’re not getting a great customer experience or you’re going to pay extra for a lot of things that other management companies may include in their larger management fee.
Renewal Fees and Additional Fees
In addition to the leasing and management fee, many property management companies will charge a lease renewal fee. This covers the cost of negotiating a new lease agreement with your current tenants, including a potential rental increase. It’s fairly standard, and always a fee that property owners appreciate paying because it means that their property manager has done a good job retaining tenants.
Some management companies will charge additional fees such as administrative fees, account set-up fees, technology fees, inspection fees, and reporting fees. Always read the fine print of your management contract before you sign it.
We believe in transparent and competitive fees, and we don’t like to nickel and dime our clients. You know exactly what you’re paying for, and there are never any surprises in your monthly statements.
Make sure you know what you’re paying before you sign a management agreement. If you’d like some help comparing management fees or you’d like to hear details on what we charge for Monroe property management, please contact us at Real Estate Gladiators.