If your current property management company is exhibiting any of these signs, it is likely in the best interest of both you and your home.
When first exploring the possibility of hiring a management company for your property, understanding how to best vet a company and the affiliated costs is essential. Leasing fees are among the possible costs that need to be considered when looking at a property management company.
A leasing fee, which is separate from the management cost, is a fee that helps take care of all of the details that go into getting a property ready to rent, vetting tenants, and getting a tenant into a unit as seamlessly and as quickly as possible. It’s important to understand which services you need, and why a leasing fee might be of benefit to you and your property long term.
What does a leasing fee cover? Is it worth it?
The most important part of understand a leasing fee is having a full picture of what exactly it covers, and if it’s something that you would benefit from. Leasing fees cover everything that it would take to get the property ready for a renter. This can include coordinating improvements to the property, developing marketing materials, providing active, direct outreach to potential renters, and completing the move-in checklist. This is a robust, well-built program which keeps things moving along as efficiently and quickly as possible for the landlord or property owner, and minimizing the amount of time that the property is left vacant.
At Rincon Property Management, we have developed the leasing program with thought put into even the smallest details. These small details can have a big impact on the bigger picture of the property, both the client and tenant’s satisfaction, and on the overall revenue generated by renting out the property quickly.
A key part of our program is the attention we give to the move-in process. Our leasing service includes an incredibly detailed move-in inspection that entails 3D scans of the property at its untouched state prior to move-in, the collection of hundreds of images to highlight the state of the property prior to move-in. This is a huge protection to the property owner, and is where the rubber meets the road as far as damage deposits, and holding tenants accountable for any undue wear and tear on the property. Advertising and the development of supplemental marketing materials are also included in the fee, allowing for active posting on rental sites, creating copy that will best frame the assets of the property and attract qualified renters, taking photos, and advertising the property well. Many companies will post a property and leave it, waiting for renters to come to them. At Rincon, we take a proactive approach by responding quickly, actively marketing the property, and starting conversations with potential, qualified renters.
Another benefit of a leasing fee is supporting a faster leasing process overall. Leaving a property to sit vacant can leave it open to scams, or damage to the property. If your property is rented at $3,000/month, and your property sits for 30 days, you are losing out on a potential of $3,000. Renting out the property a week or two faster due to a well-built leasing program within a property management company can not only help you avoid damages or scams, but can help you save money in the long run.
Why leasing fees vary, and how to navigate a variety of pricing.
Leasing fee pricing can vary, dependent on a variety of factors. Some property management companies do not charge a leasing fee at all. Because of all that goes into a well-built, proactive program for leasing, a leasing fee is a necessary, and often money-saving cost to ensure that the program is well funded and able to function as efficiently as possible. Companies that do not charge a leasing fee may struggle to commit the necessary amount of time to vetting potential tenants, advertising the property or proactively reaching out to potential tenants in an effort to shorten the vacancy period as much as possible. Not having the time to properly complete each of these tasks can cost more money or cause larger issues in the long run.
Due to the leasing fee and the ability to proactively reach out to tenants, we see an average of 30-50 leads each week. Our dedicated team is able to sift through each application, find a qualified renter and get them moved in much faster than the average 30 day wait.
When vetting a company, it’s essential to factor in the long-term benefits of your financial investment, and determine the responsiveness and attentiveness of the company.
Does the fee really make an impact on the quality of the service?
An analysis of local companies shows a few key points in relation to a leasing fee, including that those that did not charge a leasing fee were difficult to get ahold of throughout the process. Although this can happen for a variety of reasons, a leasing fee ensures that a staff member is dedicated to the leasing process, and will be readily available to answer any and all questions that you or the potential tenant may have. If a property owner is struggling to hear back from the company, as a currently paying client, you can imagine that potential renters who are reaching out are having a similar, if not worse, problem getting in contact with the management company.
Additionally, reviews of companies that charge leasing fees in comparison to those that do not show a higher satisfaction rate with services that did charge the fee. This is a direct result of being able to invest in the resources necessary to highlight a property’s best features, and actively start conversations with potential renters.
At Rincon Property Management, we charge a leasing fee to continue to provide excellent service to our clients from the start of the process to the very end. Our dedicated leasing team is available to answer questions quickly and effectively, with an average leasing time of 16 days. This short vacancy period drastically reduces further complications for our clients and helps them make back the cost of the leasing fee – and then some.
A leasing fee is a small but integral piece in the larger picture of what is best for your property. When you are looking into property management companies, consider the big picture that the small investment will play into, and take a look at each company’s reviews that you are considering.