Smart investors know that professional Visalia property management is the best way to earn more and spend less on your real estate investment. With the experience and expertise that a property manager can provide, you’ll have more time to do what you do best, and you’ll have a more profitable, less stressful investment experience.
You will naturally wonder what kind of fees you can expect to pay.
Every property manager structures their fees a little differently. What you pay will depend on your property, your needs, and the company you choose. Today, we’re sharing some of the common things you can expect in terms of property management fees when you hire professional Visalia property managers to lease, manage, and maintain your rental property.
Leasing Fees in Visalia
The leasing fee generally covers tenant placement, screening, marketing, and anything else that’s needed during a vacancy in order to get a paying tenant in place. Sometimes, you’ll find a company that charges a separate marketing or advertising fee. You might get charged separately for showings or for tenant screening. If you’re looking for leasing-only services and not full management, you may find your leasing fee is higher than what you’d pay if you were also investing in full-service property management.
Generally, however, a one-time leasing fee will cover:
- A comprehensive rental analysis to establish the correct rental price for your property. Your property manager has access to data that will help with establishing the right rent.
- Advice on preparing the rental property for the market. Your management company may make suggestions about improvements or updates that will help you rent your home quickly and for the most possible money. You’ll be responsible for any costs associated with this work.
- Photographs and rental listing. The leasing fee should include the listing that will be used to market your home to potential tenants. If there’s a separate advertising fee charged, it will likely cover the expense of syndicating your listing out onto all the popular websites that tenants use when looking for a new home.
- Communicating with potential tenants. When interested parties begin to call and message and request showings, your property manager will be tasked with fielding those calls, answering those questions, and making the property available when it’s convenient for showings.
- Managing the showing process. Whether a leasing agent shows the property in person or puts together a system where self-showings can be facilitated, your leasing fee will cover the effort that’s needed to manage this process.
- Applications and tenant screening. The screening process includes background checks, credit checks, eviction checks, and a look at income, employment, and rental history.
- Lease execution and negotiation. Your tenant, once approved, will sign the lease agreement. Your property manager will explain it, collect a security deposit, and prepare the property and the tenant for the move-in date.
Most leasing fees are one flat fee or a percentage of the first month’s rent.
Visalia Property Management Fees
While the leasing fee is paid once, the management fee is a monthly expense. Most property managers will deduct it from the rental amount before that rent is deposited in your own account.
Again, the management fee might be a flat rate and it might be a percentage of the rent that’s earned. For example, you could find yourself paying $300 a month, or you could find yourself paying 10 percent of the monthly rent.
Generally, an all-inclusive management fee will include:
- Inspections and walk throughs.
- Responding to routine, emergency, and preventative maintenance requests from tenants.
- Rent collection and lease enforcement.
- Tenant relationships and communication.
- Accounting and bookkeeping.
- Communication with HOAs, community associations, vendors, and other stakeholders.
- Lease renewals.
- Compliance with fair housing laws, rent control laws, and all state, federal, and local requirements for rental properties.
- General investment advice and support.
The scope of what your property manager provides will often be found in the management contract you sign. Make sure you review it carefully to avoid any surprise fees or unexpected charges.
Are There Hidden Fees?
When your leasing and management fees are all-inclusive, there won’t be other charges to worry about. However, some companies will add onto their general fees when specific services are needed. Here are some examples:
- Technology Fees. You might be charged for the technology used in the management of your property. This will cover the portal as well as any self-showing technology, digital locks, or other resources. Sometimes, tenants are charged for making online rental payments.
- Lease Renewal Fees. You might be charged a couple hundred dollars at the end of a lease term when your property manager is negotiating a new lease with your existing tenants. Lease renewal fees are always going to be cheaper than the cost of finding a new tenant.
- Maintenance Fees and Surcharges. These aren’t as common anymore, but you may encounter a company that charges you for maintenance on top of what you’re already paying the contractor or vendor. For example, if a plumbing cost is $500, your property manager may charge 10 percent of that. So, you’ll end up paying $550, and $50 of that bill will go to your property manager.
- Eviction Fees. If you have to evict a tenant, there will be court and legal fees to pay. You may also need to pay your property manager for their representation of you in court.
Communication and transparency is especially important when we’re talking about property management fees. Don’t sign a management contract until you’re absolutely sure of what you’re getting into and how much you’ll be expected to pay.
Most management companies will advertise their fee schedule before you even get in touch. This eliminates the confusion or the need for awkward money conversations when you do start talking about what you’ll be charged, and when.
As we said, there’s no single model or fee structure that works best for every company and every client. When you’re interested in Visalia property management services, we’re eager to tell you about our transparent fee structure. You can find those fees on our website, or you can contact us at The Equity Group.
