Your professional property management costs in Chula Vista, South Bay or Bonita will depend on the type of property you have, the services you need, and the management company you choose. While every property manager will have a separate fee structure and costs, there are a few expenses you can expect to incur regardless of your property size or the manager you choose.
When you’re comparing the cost of property management in Chula Vista, Bonita or South Bay, remember that you also need to compare the services you’re receiving.
Monthly Management Fees
The monthly management fee is either a flat rate or a percentage of your monthly rent. If you’re working with a property manager who charges a flat rate, the amount you pay every month will be exactly the same, whether that’s $100 or $350. You’ll want to know exactly what that flat rate includes, because it’s possible that you’ll have to pay extra for certain services – especially if the fee seems surprisingly low.
With the percentage structure, you’ll pay a percentage of the monthly rent that’s collected by your property manager. So, if your property rents for $3,000 per month and your management fee is 10 percent of the rent, your manager will deduct $300 from your rental income before forwarding it on to you.
Leasing or Placement Fees
Some management companies will charge a leasing fee, or a tenant placement fee. This is meant to cover the cost of finding and placing a tenant in your vacant property. It might cover advertising costs, the expense of showing your property, and any referral fee or commission that’s paid to a real estate agent who ultimately brings you a qualified tenant. If you’re charged a leasing fee, it will likely be one flat fee or a percentage of your first month’s rent. This should be a one-time fee that isn’t paid again until your property manager has to find you another tenant.
Lease Renewal Fees
Keeping good tenants in place is a major part of earning as much ROI as possible. Vacancy and turnover costs get expensive, so you want to make sure your property manager is working hard to negotiate lease renewals for your property. Lease renewal fees are sometimes charged, and could be anywhere from $50 to $200.
Maintenance Mark-up Fees
With some management companies, you’ll have to pay a mark-up on any maintenance invoice. This covers the coordination and the invoicing, as well as other tasks associated with keeping your property in excellent condition. Property managers who charge for maintenance will attach an extra fee to any repair invoice. So, if you have a roofing company doing work on your home and their bill is $500, your property manager may charge a 10 percent fee on top of that, bringing your total repair bill to $550. Not all companies do this, so make sure you ask about it before you sign a management agreement.
Additional Fees Charged by Property Managers
In addition to the common fees, you might be expected to pay an advertising fee, a vacancy fee, an administrative fee, a technology fee, or an eviction fee. Every company is different, and you’ll need to decide if you want to pay a higher management fee that covers everything or if you’d prefer to only pay for the services you need.
Talk to a few property managers, and get an idea of how they charge their clients. You want to see costs that are transparent, and you don’t want to see any hidden fees or surprises in your accounting statements.
If you’d like to talk more about Bonita, South Bay or Chula Vista property management costs, please contact us at Encore Realty, and we’d be glad to tell you more.