Hiring a property management company is usually more cost effective than expected. Once you factor in the savings your property manager is producing and calculate the highest best use of your time, hiring a property manager is an easy decision.
If you are unclear on what a property manager does, typically property management includes rental advertising, collecting rent and security deposit, bookkeeping, coordinating vendors, and resident relations.
Expect to pay between 5-10% gross rent for full service property management services.
Providing an exact figure is difficult for 2 reasons:
1) Property management firms are structured differently, and
2) The price will vary depending on what services you require, the type of property you own, and where your property is located.
In general, the lower the monthly management fee is, the higher the additional management fees will be.
For answers to more questions, please visit Sagareus Property Management Services featuring Property Owner FAQs.
When reviewing and comparing property management proposals, watch the fine print around other fees. None of these are negative on their own, but be sure you understand the actual monthly and annual amount you are paying for the service.
Common Fees include:
A renewal fee is the amount a property manager charges a client to update market rent, post notice of rent increase, negotiate + sign a renewed lease. This fee is typically much lower than the full lease up.
An eviction fee is the amount a property manager would charge the owner IN ADDITION to the cost of the eviction itself.
A late payment fee is the property manager's share of the late fee collected from residents with past due rent. Some property management firms require a share of these fees, while others do not collect any.
Sagareus Management fee structure is the clients choice between to options:
Option 1 stabilizes expense throughout the management cycle without a major expense at turn over.
Option 2 offers owners a lower monthly rate with a larger cost at turn over. Properties with low turn over benefit from Option 2.
Sagareus Management Fee Discounts
The following individuals are eligible to be reduced to firm minimums despite any other factor.