Right now we are going through tough times. With Covid-19 running the nation and hurting so many, there are many unknowns as to what is in the future. This is especially true for Maine Landlords. As for property management, we also have many unknowns and owners looking to turn to the professionals during these difficult times, often ask what fees are associated with handing their property over to managers. Keep in mind, many of the fees incurred have to do with the level of service provided by the company you choose. Some companies have different ways of looking at things and try to protect the owner the best they can. There are so many possible property management fees that there was an entire book written on it. Actually 3, as the above picture shows the book is the 3rd addition. Here are some common fees and what they mean to you.
- Management fee- This is what the company charges for service throughout the contract. This can be anywhere from 4-18% of collected rent. Until recently, it was a percentage, but many management companies are now charging flat monthly fees in order to remove any confusion.
- Set up fee- This fee is originated to set up a contract between the property management company and the owner/landlord. This fee can run between $100-$300.
- Leasing fee- This all depends on time and effort of finding quality tenants to lease your property. This also can depend on what you want for rental agreements such as long term tenants or short term tenants. The leasing fee can range from 50% all the way to a full month’s rent.
- Advertising fee- Some companies will charge a separate advertising fees and some may include that in the overall agreement. We have found that this can differ from certain parts of the country.
- Renewal fee- This type of fee can range from $150 all the way to a full month rent. This fee is charged when a tenant renews a lease agreement.
- Eviction fee- This type of fee is in place as an eviction can be time consuming and costly. Check with your company and see if they offer this service.
These are just some fees that you may see with property management companies. We look forward to continuing a weekly post to help you choose the right company. I hope we can serve you the best way possible and look forward to hearing from you.