If you’re considering using a professional property management company to rent your property in Groton, you want to know how much youre going to pay. The following are the most common management fees so you know what to expect:
Monthly Management Fee
There are two basic types of monthly management fees some managers will charge a percentage of the monthly rent, and others will charge a flat fee. Both are effective and acceptable. When you pay a management fee that’s a percentage of the rent, its an incentive for your leasing agent or manager to rent your home out at a higher rate. When your property earns more in rent, your leasing agent or manager make more money.
During periods of vacancy, property managers will offer a discount, charge nothing or continue to charge the full amount. It varies from company to company. We believe in partnering with the property owner during periods of vacancy so that we feel the pain of vacancy, too.
The leasing fee is usually the equivalent of half a months rent or a full months rent. This money pays the property manager and other agents who may be showing the property and will get your property rented fast and for top dollar. Agents love to show rentals because its a quick way to earn half a months rent.
Lease Renewal Fee
If your tenant chooses to renew the lease and stay another year, the property manager can charge a fee of up to half a months rent. The fee covers the re-negotiation of the lease, and the inclusion of any new terms that you want to see in the contract that will help protect your property.
Keep in mind: You may want to change the time of year that your lease will be up so its not vacant during a traditionally slow leasing month. You can choose to have an 18-month or any number of months lease. During the renewal period, you have a lot of opportunity to improve the forecasting on your lease renewal dates.
Maintenance Coordination Fees
Some management companies charge a coordination fee for maintenance. The amount varies and includes the time it takes for the property manager to handle the initial repair call, write up the work order, schedule the repair with the tenant and the vendor, and make sure everything is done properly. The property manager also has to invoice the contractor and bill the owner.
Sometimes, a property manager also works as a general contractor. In these cases, if you have a major repair or decide to add a deck onto your house or replace your windows, some property managers will hold a general contractors license to take care of these major fixes for you.
It’s important to understand different aspects and expenses, like fees, while considering a Groton property management company. If you have any questions, please contact us at Pledge Property Management at (860) 887-2792 or email info@PledgePM.com.