If you’re currently looking for a property management company, there is a lot to consider. You has to ask for proposals, references, and interview the companies. You can even be far away from your property and not able to meet the managers in person right away. So it’s important to make sure you are finding someone who can manage your property for a reasonable price. This means understanding the property management fee.
In this article:
Lower Doesn’t Always Mean Better
Remember: a low price does not always mean better service. You will find companies that charge a very low fee for management, and it will be tempting to hire them. But the most important factor is the quality of the services you’ll be receiving through them—especially if you won’t be able to check on the property often. So be wary of very low fees.
The Amount Will Vary
Some property management companies will have a flat fee while others will go by percentages. You’ll want to consider both, as each company will have something different affecting the fee. It could also depend on where the company is located and the type of property. Speak with the manager openly about their fee and why they charge that amount.
Remember The Amount is Negotiable
The fee offered initially is an estimate based on several things—and it is completely negotiable. Keep in mind that the first offer is not always what the company will accept. Speak with them about how negotiable the fee is and what it’s based on. Ask specifics like how long they’ll spend on your property.
The Fee May Not Equal Great Tenants
Sometimes the company will include a leasing fee within the property management fee. That means that they charge for each new tenant based on the cost of screening and finding them. You may not want this because it doesn’t actually encourage the property manager to focus on finding decent tenants, which is really important. So if a leasing fee is included, don’t write them off—but ask questions and be cautious.
The fee for property management can greatly vary depending on several factors, so look at more than just the fee and find out where it’s coming from when considering a manager for your property.