When we are talking to property owners and investors who are looking for management services, the number one question that they ask is: What are your fees? The cost of professional property management depends on the services you’re receiving and how the expenses are structured. When you’re shopping around, you can usually expect to pay at least a placement fee and a management fee.
Placement fees are often for listing a property, showing the property, screening the applicants, signing the lease, managing the move-in process, and inspecting and documenting the condition of the home. All of this is done before the keys are handed over to the tenant. In most cases, a management company will charge the equivalent of one month’s rent, or a percentage of that first month’s rent.
Your monthly management fee will cover all of the ongoing duties that a professional property manager performs for you on a regular basis. This includes lease enforcement, rent collection, maintenance coordination, and facilitating and coordinating with cities and counties for inspections. Your management fee will also cover things like Section 8 inspections, code violations, or homeowner’s association correspondence. Like the placement fee, this will be a percentage of the monthly rent that is collected, or a flat rate every month.
Depending on the property management company you choose to work with, there might be other fees charged as well. Costs to consider include additional pet fees, lease renewal fees, cancellation fees, lease cancellation fees, and others. When you’re looking for a property management company in St. Paul, make sure you ask about their fees and find out what they cover. You don’t want to have any surprises once you sign a management contract. If you have questions about property management fees in St. Paul or anything pertaining to the management of your property, please contact us at Real-Time Leasing.