Every property management company is different in the way they provide services and also in the way they collect fees.
When you’re looking for Orlando property management, make sure you’re prepared to talk to prospective property managers about the fees they charge and the way those fees are structured. More important than the price tag is the value you’re receiving. Make sure you know what sorts of services you can expect in exchange for those management fees.
Understanding Orlando Leasing Fees
While all property management companies are different, there are a couple of management costs you can count on with just about any property manager. The first such fee is a leasing fee or a tenant placement fee.
This is a one-time fee that you pay to cover the costs of finding and placing a good tenant. Usually, you can expect this to cost 50 percent of one month’s rent to a full month’s rent. Or, it could be one flat fee like $500 or $750. Find out what this leasing fee includes. Some companies will charge an advertising fee on top of the leasing fee. You’ll want to know exactly what you’re getting for your money.
Monthly Management Fees
While the leasing fee is charged once, the management fee is charged every month. This is what a landlord pays for the ongoing and professional management of a rental home. The industry standard is pretty similar to what Orlando property managers charge. You can expect to pay between eight and 10 percent of your monthly rental income in management fees.
Some management companies may charge a flat fee instead. Each company is structured a little differently. We suggest that before you hire anyone, you do your due diligence and ask the right questions regarding fees. You might be surprised to find hidden or additional fees, and no one likes surprises.
Additional Management Fees
In addition to the leasing and management fees, you might come across companies that charge things like:
Marketing or account set-up fees
Maintenance up-charge fees
Home warranty fees per call
Lease renewal fees
These fees aren’t necessarily wrong if they fit into the overall cost of management. Just make sure your property manager is up front about them so you know what to expect. A monthly management fee that seems uncommonly low might be supplemented by fees on everything that a higher management fee would normally include.
Make sure you’re measuring services as well as costs. The amount of expertise, service, and knowledge a property manager brings to the table also counts for something. It’s hard to measure peace of mind, and if you have a great management company that’s working hard to keep your costs down and your profits up, the management fees are often well worth it. Remember, you can also deduct your property management fees on your taxes, making professional management a benefit in several different ways.