When you’re looking for professional Dayton property management services, it’s tempting to look for the lowest price. Everyone wants to save money.
However, when it comes to leasing, managing, and maintaining your rental property – you really do get what you pay for. A super-low management fee might mean that you’ll have to pay extra for things that should be included, such as accounting services or tenant communication.
Property management fees will depend on the property you’re renting out and the services you need. Most companies will charge either a flat rate or a percentage of the rent that’s collected. Always read the fine print in a management agreement, and make sure you’re comparing services and value as well as price.
Leasing and Tenant Placement Fees
The first fee you will likely encounter is the leasing fee, which is sometimes called a tenant placement fee or a lease-up fee. Owners pay it only once, at the beginning of a lease term when a tenant is screened and placed and the lease agreement is signed. It will either be a flat fee or it will be a percentage of the first month’s rent. Some companies may even charge the equivalent of a full month’s rent, especially if you are only seeking leasing services and not ongoing management.
Typically, the leasing fee covers:
- The market analysis required to price your property.
- Showings and tenant responses.
- Tenant screening in compliance with fair housing laws.
- Lease negotiation and execution.
- Collection of move-in funds.
- Move-in inspection reports with pictures.
Monthly Property Management Fees
While the leasing fee is a one-time cost, the property management fee is paid every month and covers the day to day activities involved in the effective management and maintenance of your rental property. It also includes rent collection, lease enforcement, tenant relations, legal compliance, and so much more.
A good property manager will provide an accounting statement or report every month to show how much your property earned and what was spent. On that report, you should see the cost of your management fee reflected.
Additional Fees and Extra Costs
A full-service, all-inclusive property management plan will provide a lot of value and peace of mind. You won’t have to worry whether something is being done automatically or you have to request it. You won’t have to be concerned about the extra costs and hidden charges that you aren’t expecting.
Sometimes, a management company will charge extra for things like setting up your account, conducting inspections, serving notices, or representing you in court during an eviction. A number of companies will also charge a mark-up on maintenance invoices when repair work needs to be organized.
Make sure you know about these extra costs ahead of time. Check the management agreement for what else you might have to pay, and ask your property manager if there are any additional costs to working with them that aren’t reflected in that agreement.
These are some of the things you should be looking for when you’re evaluating the cost of a property management company. We are transparent and open about everything we charge and what it covers. For more information, please don’t hesitate to contact us at ManCo Property Services.