Every management company has a different fee structure, however there are certain costs you will find with every company. There are three main types of fees you’ll have to pay when you hire any professional property management company. Today, we’re explaining what they are so you know what to expect.
Leasing FeeThe leasing fee will cover all the upfront costs associated with securing a tenant. This includes the marketing and advertising costs, screening a tenant, writing the lease, and moving a tenant into the property. Everything that happens between the time that you hire your property manager and get the tenant into the property is paid for with the leasing fee. It’s a one-time cost when you’re leasing a vacant property.
Management FeeThis is the ongoing monthly fee you pay to your management company. It’s usually associated with the rent that comes in, and it’s often a percent of the gross rent collected. This should cover all things associated with the general management of your property. It includes accounting, administrative work, the periodic inspections, and dealing with your tenants all the way through the life of the tenancy.
Renewal FeeThe renewal fee will come up every year when a tenant renews a lease. It will cover the negotiations over the lease and any potential rent increase, the new terms of the lease, the inspection, and the paperwork that’s involved.
These are the average property management fees that you’ll find in this area. You want to pay attention to the small print. That small print can include hidden fees like an additional marketing fee, a setup fee, an inspection and maintenance fee, or mark ups on maintenance costs. You need to review your management contract and make sure you know what all the costs will be upfront.
If you have any questions about your property management cost or anything pertaining to Edmonds property management, please contact us at Miller Laine Property Management.