There’s a lot to consider when hiring a Charleston property management company for your investment home. Today, we’re discussing property management fees. Most people ask about the standard fees associated with property management. They want to know what services are provided with those fees, and when they are due. These are all questions you should ask while qualifying a property management company for your investment.
How Much Do Property Managers Charge? Monthly Management Fees
In Charleston, the monthly management fee is typically between 7 and 10 percent of the rent. There may be a minimum, based on the amount of rent that’s charged every month. The services included in that fee are collecting rent, paying owners, fielding requests about the property, and taking care of all the daily hassles involved in maintaining and managing your property.
How Much Does Property Management Cost? Vacancy Fee
Do you pay your management fee if the property is not occupied? Most companies do not charge you if your home is vacant, but you’ll want to make sure of that. Pay attention to the language in your management agreement. Determine whether your management fee is charged based on the rent due or the rent collected.
Property Management Cost: Lease Origination Fee
The lease origination fee is between 50 and 100 percent of one months rent. There could be a minimum amount that you’ll have to pay with this fee as well. It covers the time and effort that your property manager spends advertising and showing your property, then screening applications and signing the lease. The tenant move-in procedure is also covered by this fee.
Cost of Property Management: Lease Renewal Fee
When you renew a lease with your tenant, you extend the terms of the current lease. It’s charged in lieu of a new lease origination fee. If the tenant is not going to renew the lease, make sure you get the termination in writing.
Property Management Charleston: Property Reserve Fund
You may be asked to set aside a reserve fund for repairs or emergencies. The amount varies, but is typically about $250 per property. There might be add-on services or limited services available as well, so be sure to ask your property manager before you sign the agreement.
Finally, some fees are charged to tenants, such as pet fees, late fees, and eviction fees. Sometimes a portion of that income is split with the homeowner, so ask if you get any of that.
A property manager can promote the success of your investment. Open communication and quality customer service are the keys. For more information on the cost of property management, please don’t hesitate to contact us!