5 Property Management Fees to Expect

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Asset Hero Property Management

Hello Real Estate Investors! This is Kyle with Asset Hero Property Management, and today I thought it would be good to go over the top 5 fees you can expect to pay when hiring a property management company.

 


The most common question I get from potential clients is how much does a management company cost?

A good management company’s fees and cost structure should be transparent and straightforward, which can be hard to decipher. There should be no hidden fees!
Let us jump right in with 5 fees you can expect to see.

The first and most common fee is the management fee. This can be a flat fee, or a percentage of income collected. A percentage can be a more motivating structure, however there is a lot that goes into managing a property, such as bookkeeping, rent collection, and compliance. So, keep that in mind. Do not make the mistake of undervaluing this fee.

The Lease fee is to find a new tenant for your property. Standard marketing and necessary legal paperwork to secure a lease is generally included with this fee, which is usually between 50% to 100% of one month’s rent.

The renewal fee is to extend your current tenants lease for another term. Current market rate vs. rent being paid, payment history, repair requests, and quality of tenant are all evaluated to maximize your cash flow.

Inspections are important and require a lot of time and effort to insure you the investor are being well informed. Periodically walking through the property will ensure compliance by the tenants.

The best managers require timeliness, competitive rates, and quality work from maintenance vendors. This will maximize your cash flow but is the most time-consuming job of a manager and well-earned service.

It is important to remember that a good manager will save you more than their cost.

For more info on PM fees that you can expect, give us a call for visit us online, and remember to GET MANAGED!

OFFICE INFORMATION

Asset Hero Property Management

1580 Copperfield Pkwy

College Station, TX 77845

(979) 353-2567

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