Congratulations. You have decided to work with a professional Southwest Washington property management company. This is a good decision for you and your rental property. It will ensure that you’re kept out of trouble. There are many legal pitfalls and maintenance problems and general mistakes that can be made when you’re trying to be a landlord and manage your own rental home. It’s always best to have a professional on your team.
Experienced investors and rental property owners understand the value of good property management.
But, what does it cost?
We’re talking about what you can expect in terms of expenses.
The first fee you will encounter is a leasing fee. This is what you’ll pay for a property manager to advertise your property, show your property, screen your tenants, and execute the legally binding lease agreement.
Beware of companies that don’t charge a leasing fee. You might think you’re saving money, but you may actually be inviting a longer vacancy. Companies that don’t charge a leasing fee cannot market your property correctly. They might list it on free sites, but that’s it.
A company that charges you 30 to 100 percent of the first month’s rent will work hard to find a good tenant, and they’ll get your home rented quickly. That might sound expensive, but it’s a lot less expensive than a property that’s vacant for two or three months because your low-cost property manager isn’t doing a good job with the leasing process. Losing rent is more expensive than paying a leasing fee. Work with a good company – it’s faster and more effective.
The second fee you can expect is the monthly management fee. While the leasing fee is a one-time fee, the management fee will be paid monthly out of the rent your property earns. It covers the cost of day-to-day management, including rent collection and maintenance coordination as well as accounting and tenant relations. The management fee will vary depending on the company you work with, the property you’re having managed, and the area in which it’s located.
Inspection fees and lease-up fees can also be expected. These are small costs when you consider that a professional with years of experience and a lot of resources is taking care of your property.
The lease-up fee will guarantee you that the tenant in place is going to stay for another year. That’s 12 more months of rental income you can count on. With inspections, you know you’re getting a lot of value compared to what you’re paying. It’s important to make sure your property is in good condition. These inspections can save you thousands of dollars in repairs. It also provides peace of mind and gives you an idea of how your tenant is treating the property.
Your property inspections should be documented. You should receive copies from your property manager with photos so you know exactly what your property looks like.
For more information on costs or for anything pertaining to property management in Southwest Washington, please contact us at SunWorld Group.