When venturing into the realm of property investment, you might realize that the management aspect demands a significant investment of time and energy. Juggling tasks such as rent collection, maintenance fulfillment, and tenant screening can swiftly transform property management into a full-time commitment. Why not entrust these responsibilities to a team of seasoned professionals who can ensure the optimal care of your investment at a cost that aligns with your financial goals? At Premier, we understand the importance of property management fees being in line with your investment strategy. In this blog, we delve into the intricacies of how property management fees are calculated, providing you with valuable insights.
How Property Management Fees Are Calculated
Set Up Fees
In the initial phase of partnering with a property management team, there are several fees involved in getting operations underway. The first step involves the establishment and signing of the management agreement/contract, marking the start of the professional relationship. Subsequently, your property undergoes a comprehensive inspection, incurring an associated fee. The final set-up fees include the application for a rental or business license, particularly if you don’t already possess one. Fortunately, these set-up fees are a one-time occurrence, providing reassurance that you won’t be required to pay them again should you choose to continue with the same property management company.
Listings and Tenant Screenings
In the subsequent segment of the cost structure, the significance of listing your property and conducting tenant screenings cannot be emphasized enough. Your property manager is tasked with crafting compelling listings across various platforms, expanding the reach to a broader audience of potential tenants. This process involves capturing professional images of your property to enhance its market appeal. As applications start pouring in, your property manager engages in thorough screening and background checks, each step playing a pivotal role in determining your overall property management fees.
Leasing and Rent Collection
Ensuring compliance with local laws is paramount when it comes to your investment property, and the last thing you want is for your rent terms to violate any local laws or regulations. That’s why your property management fees cover the meticulous review of your rent terms by your manager. Equally crucial is consistency in monthly rent collection and the implementation of necessary late fees for overdue payments. Neglecting the meticulous handling of leasing and rent collection could swiftly jeopardize the success of your property management team. Thus, this aspect stands out as a pivotal component of your property management fee.
Maintenance and Vendors
Efficient property management entails addressing a diverse range of maintenance requests promptly. This necessitates a robust network of reliable vendors capable of delivering swift solutions to fulfill all your property’s maintenance requirements. From pest control and landscaping to general contractors and electricians, the spectrum is broad and demands both time and energy, along with associated out-of-pocket expenses. Rest assured, these essential services are integrated into your property management fees for a hassle-free experience.
Move Out and Legal Proceedings
As your tenant’s tenure concludes, a careful move-out procedure is essential to ensure a hassle-free transition. This involves a detailed inspection of your property, identifying any damages, and evaluating whether the retention of the security deposit is warranted. In more challenging cases, property managers may find themselves navigating eviction proceedings, a stressful and potentially costly process. All these responsibilities contribute to the property management service and form an integral part of the overall property management fees.
Property Management Fees That Don’t Break the Bank
When searching for a property management team, it is important to find one that has a property management fee that aligns with the financial goals of your investment portfolio. Thankfully, at Premier Property Management we provide a comprehensive set of property management services that ensure that your property is expertly managed and maintained, all at a price point that works with your investment objectives. If you would like to find out more about what Premier Property Management can do for you and your investments, call or contact us today.
