Property Management Pricing
Understanding property management pricing is crucial in the world of real estate. This is especially important to the person who serves as liaison to the tenants. Particularly, there are common fees that must be learned by real estate owners.
That is why it is best to read this write up since this discusses the property management pricing.
Information with regards to the typical fees concerning real estate pricing is essential in running your real estate business. If you are aware of these fees, you are likely to achieve utmost management of the pricing aspect of your property.
First and foremost, you have to understand more about the commission fees. When we say commission fees, these are the amounts of money that is charged to the property owner by the property manager due to their supervising as well as overseeing of the property. This is usually collected by the property manager in a monthly basis. The amount of money associated with this type of property management pricing varies on a case to case basis. The percentage rate is as low as three percent and the largest fee can reach up to fifteen percent based from the gross rent of the property in a monthly basis. There are also some instances that flat amount is charged by the property manager. This typically ranges from $50 up to $200.
Setup or Lease-Up Fee
Aside from the commission fee, there is also setup or lease-up fee. This is a fee that is being collected by the property manager concerning his efforts in terms of the initial time spent as well as resources used in establishing the account of the owner. To have a clearer view of this, lease-up or setup fee is also called as finder’s fee. Moreover, this fee is being required by the property manager before hiring the tenants. Once the fee is already given to the responsible individual, this will never be refundable. The amount of money also depends from one situation to another.
Lease Renewal Fee
Another fee involved in property management pricing is the lease renewal fee. The amount of money associated with this is being charged to the property owner by the property manager when he renews the leases of the current tenants. The fee also involves the services of the manager in terms of communicating and initiating paperwork involved in the implementation of the fresh lease document. Moreover, the fee is also intended for the performance of the manager once he did an annual inspection of the property. The amount of money under this varies and is usually $200 or higher. This is charged upon the implementation of the renewal.
Advertising cost is also another form of property management pricing. From the name itself, this is intended for the effort of the property manager in advertising the property that the owner has. Aside from that, the fee is also concerned with the possible rental acts of the manager in promoting the property. Other forms of property management pricing are:
- Early Cancellation Fee
- Maintenance Mark-up Charges