What hidden property management rates you should know about
Handling property can be hard, especially because of the hidden property management rates many companies add to their agreements. From renting charges to costs for moving in and out, these additional expenses can be puzzling and costly.
Leasing fees are often included in the first month’s rent and are meant to cover the costs of finding new tenants. Some property managers may also charge this fee again when renewing a lease, even if it involves less effort.
These hidden property management rates can be a fixed amount or percentage, sometimes nearly half of a month’s rent. For instance, if the monthly rent is $3,500, this might add an extra $1,750 to your management costs, raising your yearly expenses by around 4.16%.
When new tenants come in or old ones leave, there are costs for activities such as creating new lease agreements and checking the condition of the unit. Though these tasks need to be done, they can result in high property management rates during moving-in and moving-out times.
Regular inspections are key for maintaining the property well and making sure tenants obey lease rules. However, some property managers might add hidden property management rates for these checks, turning them into surprise expenses. It is smart to ask how many times inspections happen and what the costs will be.
Some property managers include extra charges for maintenance on top of the real repair expenses. This can be a fixed fee or part of the contractor’s bill, which makes maintenance costs more and increases total costs.
Renewal property management rates are another additional cost that some management companies ask for when renewing a lease. It feels unfair to pay just because you want to stay, but it happens sometimes.
Evictions sometimes need to happen, but some managers use the situation unfairly by putting in very high fees during the eviction process. Additionally, vacancy fees can seem unfair because you still have to pay management fees even when your property isn’t making money. This situation can increase your financial pressure even when the property is empty.
