How much do property managers charge? When an owner or investor comes to us, the first question they usually ask is, “How much are the property management fees?” We keep our fees straightforward and simple. Today, we’re discussing our three recurring fees, as well as some of the fees other management companies might charge.
Property Management Costs: Management and Leasing Fees
The monthly management fee that we charge is a percentage of the monthly rent collected. We also charge a one-time leasing bonus fee, which is collected when a new lease is signed on your property. This is not an ongoing fee, you’ll only pay it once when a new tenant moves in.
How Much Does Property Management Cost? Minimum Management Fee
Our company also charges a minimum monthly management fee when your property is vacant for 31 days. When a tenant moves into the property, the minimum monthly management fee goes away and we then collect the management fees. Your property manager is always working for you. Even if the home is vacant we have to keep an eye on it. We need to have it winterized when the cold weather comes and if there are storms in the area, which happens frequently in Oklahoma, we check for any storm damage. Sadly, vacant properties can be targets for vandals, so you need a property manager to be keeping an eye on your property. If we rent your property after the first day of the month, the minimum monthly fee would not apply, we would charge a prorated monthly management fee at that point. Our three fees (monthly management fee, leasing bonus fee, and minimum monthly management fee) are never stacked on top of one another.
How Much Is Property Management? Late Fees
As property owners, we know tenants don’t always pay on time. All late fees are assessed and charged in accordance with the lease. It takes time and effort to collect late rent, and we do hold your tenants accountable to the leases they sign. Some management companies retain the late fee for themselves, but we split those fees with our owners.
How Much Are Property Management Fees? Other Costs
There are other fees some companies charge that you should be aware of. Some will have maintenance up-charges, sometimes called “profit” or “overhead”, which are simply charges tacked on by the management company for making the calls to get your maintenance issues taken care of. We believe that coordinating maintenance on your property is a normal duty as your property manager which is already included as part of our monthly management fee. You should also find out if your property manager negotiated any discounts with contractors and vendors. If so, are those savings being passed on to you? You might also see something called a lease renewal fee. This is a fee charged for merely renewing a current tenant’s lease. That is not our policy. We believe once a tenant is in place, it is a very simple, straightforward thing to have them sign a renewal and do not charge for this. Some companies pass along bounced check charges to owners. We choose to absorb them and then collect them from the tenant.
There are different ways fee structures can work. Sometimes, there are hidden fees that you need to be aware of when interviewing property managers. We like to keep things simple. If you have any questions about the cost of property management in Oklahoma City, please contact us at OKC Homes 4 You.