What are property management fees? What should you expect when you are a property owner or a tenant? Whether you are renting out your property or you are renting a place somewhere in Rent Holy City, you need to be aware of the property management fees that might affect the price you are going to pay for a property. These fees vary and they can be classified into different types–monthly management fees, vacancy fees, lease origination fee, lease renewal fee, property reserve fund, and add-on or limited services. Here are some of the important details about these fees that you should take into account.
Monthly management fees
The first type of property management fee is the one you have to pay monthly. In Rent Holy City, the fee ranges from 7% to 10% of your monthly rent. Some properties have a minimum fee based on the management charge. This monthly fee is for collecting rents, paying the owners, catering to your requests about the property, and other daily errands that you might ask from the management.
Vacancy fees are also charged to property owners. However, not all property managements demand this fee. If you are a property owner, you should double-check with the management whether the vacancy fees are for rent due or for the rent collected. The amount varies and you should be able to inquire that to the management.
Lease origination fees
Lease origination fees are typically equivalent to 50-100% of one month’s rent. Depending on the management, there can be a minimum fee based on the management charges. These fees are for the time and effort of the management to advertise and show the property, tenant screening, signing a lease, and moving the tenants into the property owner’s home.
Lease renewal fees
Lease renewal fees are charged to property owners in order to extend the terms of their current lease. Some property managements consider this in lieu of lease origination fees. In case you don’t want to extend your lease contract anymore, it’s advisable to get your termination in writing.
Property reserve funds
These funds are used for repairs and emergencies. In case a portion of your property needs to be fixed first before a new tenant moves in, the property reserve funds will be used to pay for the expenses. The amount of this reserve varies. On average, property managers charge $250 per property. So, if you have more than one property to lease, you might need to set aside more than $250 for the property reserve funds.
Add-on or limited services
Finally, the add-on or limited service fees are charged to the tenants for special services they request from property managers. These fees can be pet fees, waiting fees, and eviction fees. If there are such fees charged to the tenants, you have to talk to the property managers and ask if you can get a portion of these charges as additional to your rental income. Sometimes, these fees are split between homeowners and property managers.