Types Of Fees For Property Management


Companies offering property management services act as liaison between tenants and oneself. Property owners need to ensure that they're getting the best value for their money for the services offered by such company. The offered package by such service providers may either be ala-carte and comes with associated fees or an all inclusive package.

Just before you decide to hire Texas multifamily real estate property management firm, you have to know at least various fee structures they have available.

Number 1. Setup fee or lease up - in this type of fee, the first rent payment is typically made to property manager partially or perhaps, a onetime payment and it's non refundable for physical work done for placing tenants on the property.

Number 2. Commission - to be able to compensate Texas multifamily real estate property manager who looks after the property, the owner needs to pay monthly fees which vary from 3 to 15 percent of gross rent. Majority of the management companies typically charge a flat fee which varies at around 50 to 200 dollars.

Number 3. Advertising cost - according to contract in property management, the cost of advertising may either be made by the owner, the company or it could be split up between 2 parties. Set up fee or lease up fee will be charged in case that the property manager has covered the stated cost. Then, one has to know the kind of cost involved because if not, one won't get the proper value of the property. One may also make use of the web for bringing in tenants, yard signs, open house, listing on MLS or even print media.

Number 4. Lease renewal fee - here, the property manager is going to charge a fee for the communication and paperwork involved for renewal of the lease or perhaps, end year inspection fee for the price of 200 dollars or even more and is charged every time for the renewal. If you want to learn more about Property Management, you can visit http://www.ehow.com/about_4603681_property-management.html .

Number 5. Maintenance markup fee - for this kind of property manager, they are charging tenants when they use the in-house vendor or staff for replacing or repairing items at a percentage of additional 10 percent to actual cost involved.

Number 6. Early cancellation fee - in case that the owner is not satisfied with property manager, then the deal could be cancelled but for a price of 500 dollars. Several other fees involved can be minute but it can create deep hole when you are paying for it.

Know these fee structures before hiring a property manager so you know what to expect when it comes to payments.