Understanding Property Management Fees
Property management fees are complex, and navigating them can be daunting. Most companies charge a monthly fee which can be either flat or a percentage of rent collected. There are also additional fees such as a leasing fee, a tenant move-in inspection fee and an eviction fee. Read on to learn more about these fees and how they are charged. Setup Fee A setup fee is a one-time flat fee that the company will charge to get started working with you. It will likely cover marketing costs, an initial inspection of the property and the purchase of materials to help communicate with new tenants. It can cost up to $500 or less, and it’s a good idea to ask your management company what they’re charging for this before hiring them. A property management company will also often charge a monthly maintenance fee, which is a small percentage of the rent collected for each rental unit. This fee is usually between 8 – 10% of the rent, depending on the services that are being offered. It’s important...