Covid-19 related legal changes outlined here.
Selecting the right property management company is an essential part of owning a rental property. When a property owner is vetting companies to manage their property, we encourage them to find a management company that is transparent about their pricing, and disclose any fees in advance.
In some cases, an individual may find themselves working with a company who is not transparent about their pricing structure or fees. This can be detrimental to the property owner’s trust in their property manager, and can even be cause for switching management companies, costing more time and money. Below are a few of the fees that you can expect from property management companies.
Leasing fees cover everything that needs to happen to get a property rent-ready. Depending on the condition of the home, the leasing fee could cover completing a move-in checklist, reaching out directly to renters, finding and screening tenants, marketing the property to potential tenants, and more.
Not all companies charge a leasing fee. At Rincon Property Management, the leasing fee is essential to ensure team members are dedicated to the leasing process and can rent out homes quickly. Because of our dedicated team members, we see an average of 30-50 leads per property, per week.
When a property is rented out faster, the income from renting out the property will come in sooner. This often saves the property owner money in the long-run. Because it often saves the property owner money, a leasing fee is in their best interest.
Early Cancellation Fees
When you are vetting a property management company, make sure you ask about their cancelation fees. Although not all companies charge cancellation fees, it is important to be aware of the term you are agreeing to. These cancellation fees may dictate a specific amount of time that you are required to utilize their service before you can terminate.
In some circumstances, a tenant may be unable to pay rent on the date it is due. When this happens, some property management companies may charge a late fee to the tenant. Some companies may keep the late fee, while others may pass along the additional charge to the property owner.
The maintenance coordination fee is a 10% fee that is a part of our full-service program. The 10% fee is based off of the vendor’s invoice total, rather than being charged as an ongoing, monthly fee. At Rincon Property Management, we include this invoice in the monthly statements so our clients know the exact amount that was charged and what was repaired within the home.
This fee is critical to being able to maintain our year-round, 24/7 emergency maintenance hotline, and to quickly handle repairs. Companies that do not charge this fee may delay repairs, leading to larger maintenance issues down the road. When it comes to your home, it is important to fix issues before they grow.
Lease Renewal Fee
Lease renewal fees occur when a tenant chooses to renew their lease and continue living at the property. Because property management companies charge a leasing fee when a tenant moves out, some property management companies may charge a renewal fee during this time. The cost of the fee varies from company to company, so it is important to inquire about lease renewal fees while you are vetting a company.
At Rincon Property Management, we only charge a leasing fee while we are advertising to place a new tenant in the property. The lease renewal fee is charged only to negotiate the new lease with the existing tenant.
While some companies may have additional fees, others may have fewer fees than are on this list. It is important to discuss exact pricing and fees with the specific property management company you select. If you select a property management company that is transparent and values quality communication, no fees should be hidden. All fees should be explained and disclosed in advance.
To learn more about our pricing at Rincon Property Management, you can view our pricing page, here.