When you’re looking for professional property management
, it’s important to pay attention to the services you’re receiving in exchange for a property management fee. Today, we are discussing the different types of fee structures you can expect when shopping for a management company.
Flat Rate Fees vs. Percentage Fees
Most property managers charge either a flat fee or a percentage of the rental income on a monthly basis. With a flat fee, you pay one set amount every month, and it includes a certain number of services. With the percentage model, the management company takes a certain percentage of the monthly rent as their fee before passing on the rest of the income to you.
Services Included with Fees
In general, companies that charge a flat rate often cost less on a monthly basis. However, they might also charge extra for additional services that would be included under the percentage model. For example, they will charge you a maintenance cost when any repair work is done. They might charge a fee for inspections, and other things. This is how they make up for the low flat rate that they advertise. With a company that charges a higher percentage, you’re usually getting all of these things included in the monthly management fee. It’s more inclusive and you get more coverage. Maintenance is not marked up, and inspections are included with your monthly service.
Review Your Management Contract
Always look closely at the company’s management contract before you hire. It’s important that you understand the fee schedule and any charges you might find that are not included. We always recommend that instead of looking at costs on a monthly basis, consider what you’ll be paying on an annual basis. You’ll need to know what it will cost to operate your rental property every year.
If you have questions about fees or what to look for when you’re hiring a property manager in Mesa, please contact us at East Valley Property Management. We would be happy to create a customized quote based on your individual needs.