One of the first questions most owners ask us is – how much does property management cost?
This is a good question. When you hire a professional Charlotte property management company, you’re looking for the resources and expertise that will help you make your investment property as profitable as possible. Management fees are less of an expense and more of an investment, because working with a good property manager will help you earn more with your property.
Every company is different when it comes to what they charge and how they structure their fees. What you pay will depend on the type of property you have, the services you need, and the company you’re working with.
There are a couple of fees that are pretty standard, and we want to cover those before we share with you how we approach management fees at AM Realty.
Charlotte Leasing Fees and Management Fees
Most Charlotte property management companies charge a leasing fee, which is a one-time payment that covers the cost of finding a tenant for your vacant property. Most leasing fees are a percentage of your first month’s rent or even the equivalent of a full month’s rent. Some companies charge a flat fee. The leasing fee often includes:
• Advertising and marketing, including photos and online ads
• Establishing a rental value for your home based on market data
• Responding to tenant questions and following up with inquiries
• Scheduling showings
• Collecting and managing applications
• Screening prospective tenants
• Collecting security deposits, pet fees, first month’s rent, and other move-in funds
• Conducting a move-in inspection with photos
• Discussing and signing the lease agreement
Some things make be extra. You might encounter a company that charges for photography or marketing, for example. That’s okay if the leasing fee is really low. But, if you’re paying a high leasing fee and extra fees for services that should be included, you might not be getting the best deal.
The monthly management fee is usually a percentage of the rent that’s collected. So, if your property earns $1,200 a month in rent and your management company’s fee is 10 percent, you’ll pay them $120 per month. Usually, this fee will be deducted before your rent is deposited into your bank account. Sometimes, a management company will charge a flat fee regardless of what your property earns.
The management fee usually covers everything that’s involved in the day-to-day running of your investment property. This includes rent collection and lease enforcement. It also includes managing tenant requests and relationships. The management fee covers accounting and maintenance coordination. It should also include the serving of any notices, legal compliance, inspections, and the upkeep of tenant and owner portals and communication.
AM Realty’s Management Fee is All-Inclusive
At AM Realty, we don’t charge leasing fees or any of the extra fees we’ll talk about in a minute. Instead, we charge only an all-inclusive management fee. It covers all of the work we do to lease, manage, and maintain your home.
We also have a sliding scale of fees, which is based upon how many units you bring us to be managed. This is the most comprehensive and cost-effective way we’ve found to provide outstanding property management in Charlotte.
Potential Extra Fees and Charges
The leasing fee and the management fee are pretty standard.
Some management companies might also charge a renewal fee when the lease has to be re-negotiated. You might also see an accounting fee, a technology fee, an account set-up fee, an administrative fee, and other additional fees for inspections or maintenance mark-ups. Your property management company might require a maintenance reserve. Take a close look at the management agreement before you hire a company, and make sure you understand exactly what you’re paying for.
We would be happy to tell you about our Charlotte property management fees, and what you can expect to gain from working with us. Contact our team at AM Realty.