Let’s say you own rental properties, but you have decided to let a rental management company represent you. This decision shouldn’t be made lightly, and while many owners choose to manage the properties themselves, a management company lowers the stress and secures your rental income for the dedicated length of time. The tradeoff of eliminating the stress, however, means you receive a lower income as a result of the fees.
What Property Management Does
A rental management company collects the fees for the services offered, and they will find dependable tenants. Basically, they handle all the dirty work from the late-night phone calls to hunting down rental payments and maintenance management. What are the fees you should be aware of?
The Leasing Fee
The owners will have to pay a leasing fee, which comes from the advertising and showing of the property. This also comes from reviewing and screening the tenants and preparing the property. Normally, the leasing fees will cost around 75 to 100 percent of the first month’s rent.
Monthly Management Fees
Collected for the services that have been associated with processing rental payments, this usually ranges anywhere from seven percent to 10 percent. As an owner, you should check for house rental management companies that have a policy based on rent due or collected rent.
The Other Fees
You have a bunch of other fees that include:
- Vacancy fee
- On-boarding fee
- Late fee
- Maintenance fee
- Eviction fee
- Lease renewal fee
What fees a Calgary condo management company collects will depend on the company, and you should acquaint yourself with these fees in advance. You should ask specific questions about the fee structure they offer, and you have to look at the services they include in it.
New Leaf Properties is a group of dedicated professionals with expertise in managing residential properties for over 25 years. We offer a fresh approach to property management for owners and renters.