When you hire a professional property manager to take care of your property, there are certain property management fees involved. We are explaining what some of those fees are, and what you can expect when you work with us at Priority One Real Estate.
Examples of Property Management Fees
The main fee charged by property managers is the management fee. This is usually a percentage of the rent that’s collected. Our philosophy is we only collect the fee when rent comes in. This makes us even partners with the same goal in mind; to make sure rent comes in on time. If no rent is collected, we do not get paid.
Percentage Fee vs. Flat Fee
You may wonder why we charge a percentage of the rent that’s collected, and not a flat fee. The explanation is similar to why we don’t get paid until you do: it makes us partners. We’ll be aggressive with our monthly rent price when it comes time for lease renewals. We have costs that increase every year, just like you do. Getting a slightly higher fee every year allows us to not increase the costs for you. Our fees increase through higher rents paid by the tenant. We both have incentives to give good service and keep tenants living at your property for an extended period of time. Our increase every 12 months comes from rent, not your own pockets.
Additional Property Management Fees
There are other property management fees that are paid, but they are paid by the tenant, not you. These include late fees, breaking the lease fees, walk out fees and a few others. These are not meant to gain extra income for the company, but to pay for the additional costs that we incur when tenants do not follow the terms of their lease agreements. It takes more time out of our day to deal with these situations. As a property owner, you are not responsible for any of these fees – just the one management fee.