What kind of fees should you expect from a property manager? Not specific rates, but types of fees – management fee, leasing fee, hourly/consulting fee, advertising, etc.
If you’re considering hiring a property manager to help handle your various commercial or residential properties, it’s always good to know what sort of fees you can expect. As with any service, there are a variety of areas that require certain costs, and that should all go into your decision. These are some of the fees you can expect from a property management service.
1. Management Fee
This fee is a given. You are hiring a management service, and that means you will need to factor in a management fee. Depending on the company you hire and your particular situation, fees can range from a percentage of the monthly rent to a flat rate. The fee may also change based on the type of property, number of units managed, location, whether or not the property is occupied or needs to be filled, and more. Always ask up front what a particular company’s policy is.
2. Leasing Fee
If your property is currently empty, then you can work with your selected property management company to find a tenant. They will perform required background or credit checks, as well as going through their network and advertising in order to find you a qualified tenant. This service will typically require an additional fee for the manager’s time and work.
3. Hourly/Consulting Fee
You may find that you only require property management services on a consulting basis or for a particular project without requiring an ongoing relationship. If that’s the case, you can often hire one for an hourly rate. Contact the company of your choice for their usual asking rate.
4. Advertising Fee
This fee is exactly what it sounds like – a fee for creating and managing advertising for your property. This may include ads or online listings, among other options. It’s often best to have a professional handle this for you if you’re not experienced on the best ways to reach potential tenants.
These are a few of the fees you can expect if you work with a property manager. Many property management groups offer additional services for your convenience, so be sure to ask about how they can make your life a little easier.