Property Management Fees Explained

A property management company is a must when it comes to owning rental properties. As you invest in real estate, be it vacation properties, condos or even commercial property, it is important to have a team in place to help you manage the day to day operations. With a team, you have the ability to focus on your business while the property management group handles issues with tenants, rental payments, upkeep, etc.

When you hire a property management company, there are fees involved. The type of fees that you pay will be based on the company you choose to work with as well as what services you are provided. Some companies charge a set fee per property while others have this fee but additional fees based on property circumstances. Learn more about such charges below.

Typical Fees

When you hire on a team to manage your property, you will typically sign an agreement that will list the fee for your property management needs. Usually, this fee is around 8 to 12 percent of the monthly rental value of the property along with expenses. However, some companies may charge a flat rate per month. You want to learn more about the fees the company will charge you and just how much you are paying for your Kitchener property management needs. Speak with several companies to compare rates and services to get the best deal.

Additional Fees that may be Required

Depending on the management company you work with, there may be more fees involved. Some management firms will charge one month rent up front, even if a property is vacant. This money can be used to help find a renter for the property but a cost that you may have to endure. Some management companies will only charge if a tenant is living in the property or charge a reduced fee if the property is vacant. These are terms you should discuss before signing on the dotted line.

Maintenance is also a considering factor. Some companies will have their own maintenance crew hired full-time. You will need to negotiate maintenance fees and what needs to be done each month. Ask about extras and find out if you will be contacted before a service is completed. You don’t want to be blindsided by extra charges so always read the fine print.

You may also find the property management company charges an eviction fee. Find out the terms that the company sets for evictions such as if they charge a fee per eviction. There may also be court costs to cover depending on the type of eviction.

Overall, you must find out all the details in regards to the property management agreement before moving forward. Only work with a reputable management company in order to save money and to have a strong team managing your properties.

At Latitude Properties, we offer nothing but the best in property management service options. Let our team care for your real estate investments ensuring that your properties stay in perfect condition and that you are maintaining renters on a steady basis.