Smart investors know that professional Boca Raton property management is the best way to earn more and spend less on your rental properties. With the experience and expertise that a property manager can provide, you’ll have more time to do what you do best, and you’ll have a more profitable, less stressful investment experience.
It’s understandable to wonder what you’ll have to pay. Every property manager structures their fees a little differently. What you pay will depend on your property, your needs, and the company you choose. Today, we’re sharing some of the common things you can expect in terms of property management fees when you hire professional Boca Raton property managers.
Boca Raton Leasing Fees
The leasing fee is sometimes called a tenant placement fee. It’s a one-time fee that you will pay your property manager at the beginning of your management contract, or as soon as a tenant is placed in your property. Most management companies will either charge a flat fee or a percentage of your first month’s rent. Sometimes, if you’re only asking for leasing services and not full-service property management, you’ll pay as much as the equivalent of one month’s rent or more.
Leasing fees will usually include the following services:
- Pricing your rental property according to the market.
- Preparing your property for the rental market and showings.
- Creating a listing with high quality photos and detailed descriptions.
- Advertising the home online and the MLS.
- Following up with prospective tenants who have questions.
- Showing the property.
- Screening potential tenants.
- Reviewing and signing the lease agreement.
- Collecting the security deposit and other move-in funds.
- Conducting a complete move-in inspection with pictures and a report.
For some property managers, these are all services included in the leasing fee. Others might charge a smaller leasing fee but then charge extra for things like professional photography or online advertising.
Boca Raton Monthly Management Fees
When you elect to hire a full-service property management company, you’ll pay a monthly fee after a tenant has been screened and placed. It’s usually a percentage of the rent that’s been completed. For example, if you rent out your property for $1,500 per month and your management fee is 10 percent, you pay $150 every month. Some companies will charge a flat fee instead of a percentage, and you’ll want to find out what that covers. It may be low, and it may mean that you’re not getting the same value and services as a more expensive management company.
The management fees should cover everything from rent collection to maintenance. Enforcing the lease, sending notices and correspondence, managing tenant relations, and maintaining detailed and accurate accounting records are all part of what your management company should be doing in exchange for the property management fee you pay.
Ask About Extra Fees and Check the Management Agreement
If there are any other fees and expenses that cover work outside the normal scope of work provided by the management and leasing fees, it’s the property manager’s responsibility to tell you that. Make sure you read a copy of the management agreement carefully before you sign it.
Every company is different, but we have seen extra fees for things like:
- Move-in and Move-out inspections.
- Administrative fees.
- Lease renewal fees.
- Accounting or bookkeeping fees.
- Technology fees.
- Photography or advertising fees.
- Maintenance upcharges.
If you have any questions about the cost of property management in Boca Raton, we’d be happy to tell you more. Contact us at Domu Properties.