When considering hiring a property management company our prospective landlords want to know what our fees are up front. The cost of property management is really broken down into three important categories.
- The monthly management fee
- The fine print in the management agreement
- The amount of experience and the level of service of the property management team
Monthly Management Fee
We charge 10 percent of the monthly rent or a minimum of $150 per month. We know that we have competitors who charge less for the monthly fee, and that’s why we tell landlords and investors to focus on more than just the dollar amount of that upfront fee. You should be considering the fine print or clauses in the property management agreement as well as the level of service and experience of the company you are considering. You are not necessarily getting the same service when you’re comparing management fees. Cheaper is not always better.
Fine Print in the Agreement
It’s really important that you review property management agreements from all of the companies that you are considering working with before you sign them. The upfront monthly fees can be deceptive, that is why we encourage you to review the agreements thoroughly so you are not surprised by any hidden clauses. Some companies charge less per month but then mark-up repair invoices or charge a service fee for invoices. They may also be connected to the company that does repairs for the property and are making money off of your repairs, which we believe to be a conflict. We want to run a completely transparent company so you always know every month what our fees are and you can budget accordingly.
Experience and Dedication
The level of service and experience of the property management company you’re researching must also be considered when you’re comparing property management fees. Experience really matters. Our property managers are experienced at trouble-shooting repairs with tenants, handling small maintenance items themselves if possible, and educating the tenant on what to look for. Then, if needed, they will call in the appropriate contractor to handle the repair the correct way the first time. Using the wrong contractor at the wrong time can be expensive. Hiring the cheapest contractor can result in future repairs and expenses. You want to choose the vendor who will do the work right the first time and protect you and your tenant. That is we only work with licensed, insured, and experienced vendors. A great property management company will always keep the landlords best interest in mind when making decisions regarding the properties they manage.
Property management costs are more complex than the upfront fees. That is why we spend the time discussing why all of these things are important with prospective landlords. Ask questions about the fine print in the property management agreement and the experience level of the company you are considering working with. Find out how long the company has been in business and look at their reviews online. Get references. Make the right decision the first time.
If you have any questions about the cost of property management or you would like to speak with us regarding our property management services, please contact us at Chesapeake Property Management.
