When people ask me what property management costs, I always explain that it has to be broken down into three parts. There is the monthly management fee, the fine print in your management agreement and the amount of experience and the level of service you’re getting from your property manager.
Monthly Management Fee
We charge 10 percent of the monthly rent or a minimum of $150 per month. I know we have competitors who charge less for the monthly fee, and that’s why we tell owners and investors to focus on the fine print and experience as well. You are not necessarily getting the same service when you’re comparing management fees.
Fine Print in the Agreement
It’s really important that you get a copy of all the property management agreements that you consider signing and really look at them. The monthly fees can be deceptive. We do not have any fees in the fine print of our property management agreement. Some of our competitors charge less per month but then they mark-up repair invoices or charge a service fee for invoices or they are connected to the company that does repairs for the property. They are making money off of your repairs, which we think is a conflict. Read every word and every phrase very carefully. We know there are fees hidden in many clauses. We want to run a completely transparent company so you always know every month what our fees are and you don’t have to wonder what you’ll be charged.
Experience and Dedication
The level of service you get also has to be considered when you’re looking at prices. I can’t stress this enough. Experience really matters. Our property managers are experienced at trouble-shooting the repair, handling it themselves if they can, and training the resident on what to look for. Then, 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. You don’t want the cheapest contractor around. You want the one who will do the work right the first time and protect you and your resident.
So when people ask me what property management costs, all these things are important. Ask questions about the
fine print and experience. 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 this, please contact us at Chesapeake Property Management.
