Property Management 101

Decoding Property Management Fees

It can be difficult to decode property management fees when you are new to the space. Why do companies charge different fees, at different price points? And, what's the difference? Is there one? In the video and article below we share with you how to vet a property management company, and how we at Rincon Property Management handle property management fees. 

When you hire a management company, you are paying for two things. When you hire a property management company, you are paying the property managers for the expertise of managing a property and for the execution of tasks related to managing a rental. Marketing the property, vetting and selecting a tenant, collecting the rent, doing inspections, providing maintenance that is done well the first time and in a timely manner for the health of both the home and tenant, and doing the monthly accounting can seem relatively simple on their own but when combined, they can get complex quickly. Many times changing local, state and federal laws bring an added layer of complexity to the situation as you have to keep up with changing guidelines to remain compliant in all of your efforts. 

If you are looking for a property management company and find one that you're interested in, ensure that you think about the reasons for choosing them. You want to make sure your property management company meets your needs, communicates well, treats both their clients and tenants well, and takes care of the properties which they manage. If you find a company that does each of those things well, you will likely find that they sustain this by charging additional fees to support it.

You may find companies that are cheaper or do not charge certain fees at all. If a company competes in pricing alone, this is likely not a company you truly want to work with or entrust with your home. You want a company that has accurately assessed their needs and charges what is necessary to maintain a strong vetting process, quality maintenance for the home, quick return phone calls and more. Unfortunately, cheap fees almost always equals cheap service. If a company does not charge these fees, they will likely have to cut corners as thorough work must be completed by team members who have the time to address issues thoroughly. Each management task is essential, but some of the less essential ones will eventually fall off the plate. This can even include lesser maintenance tasks that could grow into a larger issue over time if left unaddressed. 

How can you know if a company you are looking at is great at what they do? Go to their social media and review profiles like Yelp and review what others are saying to them. If the majority of reviews are negative, you can expect a similar experience. Many companies will blame bad reviews on tenants, but this is not a good reason. Happy tenants stay longer and take better care of properties by reporting maintenance issues right away. Paying more in management fees will almost certainly save you money in the long-run.

The leasing fee is a fee that many of our competitors do not charge. If you contact us about a property you want to rent, we often respond within minutes. If we can't get ahold of an applicant, our dedicated team members will continue to follow up when appropriate. We are selective about tenants with our robust screening process, and the ability to do this comes from the fees we charge to support our leasing team. 

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