Trying to understand property management fees and fee structures can be frustrating, especially if you’re considering a management company that doesn’t have clear or transparent costs. At Encore Realty, we try to provide the best services in Chula Vista property management for the most competitive fees. We’re clear about what we charge, too – everything is listed on our website.
On today’s blog, we want to share some of the basics when it comes to management fees. What you pay and how you pay it will depend on the company you choose, the properties you own, and the services you need. Most of the property management companies you’ll encounter will charge a percentage-based fee for both management and leasing services. Then, there may be a list of additional fees that you’re charged. Let’s break those down.
Chula Vista Leasing Fees and Tenant Placement Fees
The leasing fee, which is also called a tenant placement fee or a lease-up fee, covers the cost of advertising your home, showing the property, screening potential applicants, and finding a great tenant. It should also include negotiating and executing the lease, collecting the move-in funds, and conducting a move-in inspection. Many local property management companies will charge you a percentage of the first month’s rent or a flat fee.
We charge a flat fee for the owners who use our full-service property management fee. For owners who only want us to find a tenant and not manage the property, we charge 50 percent of the first month’s rent or $1,000 – whichever is higher.
Make sure you know what your leasing fee covers. Some companies won’t charge a leasing fee at all, but then you’ll be charged separately for marketing, move-in costs, and other services.
Chula Vista Property Management Fees
While the leasing fee is a one-time fee the covers tenant placement, the property management fee is paid every month, and it’s usually deducted right out of your rental earnings. Our management fee is 10 percent of the monthly collected rent. This is within the range of what most local companies are charging. You can expect to pay around the same amount for full-service management.
The difference is in what you receive for that fee. You want a strong list of services, and you also want expertise and knowledge.
Read the fine print of your management contract before you sign it. If you find a company that charges a dramatically low management fee, there’s probably a reason. Either you won’t receive high quality property management or you’ll end up paying more in the long run with the list of additional fees and extra charges that will apply.
Additional Management Fees in Chula Vista
Some property management companies will charge extra fees like administrative fees, account set-up fees, technology fees, inspection fees, maintenance mark-ups, and bookkeeping fees. A management company may charge you every time you have to serve a notice or contact the tenant. These can be really cost-prohibitive, and it’s unlikely that a management company will be completely transparent about these extra costs in the beginning. Make sure you know exactly what you’re paying and when you’re paying it.
For more information on Chula Vista property management fees, please contact us at Encore Realty. We’d be happy to talk more about fees in general and our services in particular.