Professional property management fees depend on a number of factors, and what you pay will depend on variables such as:
- How many units you need to have managed.
- What kind of services you need.
- How old and how large your rental homes are.
- The amount of rent you’re earning on those properties.
Most importantly, your property management fees will depend on the company you choose to work with. Every Myrtle Beach property management firm has a different way of charging fees. You may find all-inclusive fee structures and dramatically low monthly fees that require you to pay extra for additional services that you might have expected would be included. Some companies charge a flat rate and others charge a percentage of what your property earns.
There are few standard costs that you can expect, however, no matter which management company you choose to work with.
There are also some things that are never included in your property management fee – such as the maintenance needed on your property or the pest control that we schedule for your rental home.
As you’re choosing a management partner and comparing prices, remember that the value you receive is far more important than the price you pay. You want to know what kind of experience, insight, and resources you’re getting in exchange for that management fee.
Good property management is not a commodity. It’s an investment.
One-Time Myrtle Beach Leasing Fees
On rare occasion, the property management fee you pay will include the leasing of your property. Typically, however, it does not. There’s a separate leasing fee, which you will pay as soon as your property manager begins marketing and showing your property.
With J&P Unlimited, you will only pay the leasing fee one time. It’s not a recurring charge, and best of all, you won’t be charged until a lease is signed with a high-quality tenant. Unlike several companies who require this fee up front, J&P takes the fee from your first month of rent proceeds, so it will not need to be paid out of your pocket.
Always ask your property manager how much this fee will be and whether it’s included in the management fee or separate. Most property managers will charge a flat leasing fee or a percentage of the first month’s rent. Some companies will charge you a full month’s rent to get your property leased.
What does your leasing fee include? Typically, it will include:
- Rental analyses that result in a competitive rental value.
- Advertising and listings
- Tenant screenings that comply with fair housing laws
- Security deposit collection
Leasing fees may not include professional photos. If you or your property manager hires a professional photographer, you’ll likely be billed for that photo shoot. Any other services that go beyond basic leasing, such as staging, might also be extra. You’ll have to pay to have your rental property professionally cleaned before showings begin.
Conway Property Management Fees
Property management fees are paid monthly. They cover the day-to-day operational activities involved in the effective management and maintenance of your rental property. It also includes:
- Rent collection
- Lease enforcement
- Tenant relations
- Legal compliance
- Routine and emergency maintenance
- Book keeping
Your property manager should provide an accounting statement or report every month to show how much your property earned and what was spent. On that report, you should see the cost of your management fee reflected. Other companies may use software that can allow you to log in and see your property financials 24 hours a day.
Here is where you have to measure value against cost. The type of management services you receive reflect a property manager’s experience, resources, and commitment to your property.
What’s NOT Covered: Maintenance is Your Responsibility
You won’t have your maintenance costs included in your property management fee. When a tenant reports that a toilet isn’t flushing or the water heater is leaking or a window screen is torn, your property manager will take care of organizing the repair. You can expect your management partner to contact the appropriate vendor, coordinate the repair, and supervise the process making sure the issue is resolved properly.
If your property manager does pay the maintenance bill, the cost will be deducted from the rental payment that’s made to you the following month. This should all be documented in your accounting statement and/or in your owners’ portal.
You’re also responsible for preventative services. Pest control, as we mentioned, is your responsibility and not included in the management fee. When you have landscapers take care of the mowing and the lawn care, you have to pay for that yourself or include the amount in the rent so that your tenants are covering the cost. Property management fees do not include cleaning, rekeying of doors, or the filing of eviction notices and other paperwork.
What’s NOT Covered: Ask about Additional Fees and Extra Costs
There are also a number of things that may not be covered, even if you’re anticipating that they are included in your management fee. Sometimes, a management company will charge extra for things like setting up your account, conducting inspections, serving notices, or representing you in court during an eviction. A number of companies will also charge a mark-up on maintenance invoices when repair work needs to be organized. So, instead of paying $350 for an HVAC service, you might notice your invoice is for $385, to accommodate your property manager’s 10 percent upcharge on the bill.
Lease renewals will come with their own charges.
Make sure you know about these extra costs ahead of time. Check the management agreement for what else you might have to pay, and ask your property manager if there are any additional costs to working with them that aren’t reflected in that agreement. No one wants to be surprised when the first accounting statements begin showing up.
There is no one right way to charge for property management services. Every company will do things differently, and what’s most important is transparency. You need to know exactly what you’re getting and what’s likely to be extra.
This is an overview of what you can expect in terms of management fees. If you’d like more information on what we charge and how we structure fees, please contact us at J&P Unlimited. We manage investment properties in Myrtle Beach, Conway, Surfside Beach, Murrells Inlet, Socastee and the surrounding areas.