Property management fees vary considerably depending on whether the property under consideration is single-tenant or multi-tenant, as well as depending on whether the property is residential or commercial.
These fees may represent a flat monthly fee, but typically they represent a pre-agreed percentage of the rental income ranging roughly between 5 and 15% depending on the range of services provided, quality of services and of course the state of the market. Typical property management services that are covered by the property management fees include:
– Managing the whole process of finding new tenants for units that are vacated, from marketing the property to screening applicants and negotiating and executing rental contracts
– Preparing a management plan and budget
– Collecting rents
– Handling and maintaining good tenant relations and ensuring tenant satisfaction and high retention rate
– Handling lease contract violations, including non-payment of rent, unsuitable behaviour, and evictions
– Inspecting the property regularly in order to assess its condition and identify maintenance tasks
– Managing and arranging all repairs that are necessary for maintaining the property in good condition
– Providing security
Depending on the agreement signed between the landlord and the property management company, the landlord may need to pay in addition to the monthly property management fees and some additional fees such as a leasing fee in the case of new leases, which may range from 25% to 100% of the first month’s rent, a lease renewal fee, in the case they handle all necessary paperwork for leases that are renewed, and potentially a maintenance mark up cost for repairs that the property management company carries out through their in-house staff.