Tagged with Contract & Fees and About commercial property management Colorado Springs Like so many other things, the answer to this question is “it depends.” The scope of the engagement will determine how different property management firms are. What do you need a property manager for?
A property owner can arrange with the best property management companies Colorado Springs to delegate certain tasks and functions. A property owner might want to delegate some tasks and functions to the property manager while still being very involved in other areas. One owner might prefer to be completely hands-off. The fees for property management vary by location and property type.
Typical Fee Agreement
A typical residential best property management Colorado Springs will charge between 8 and 12% of the monthly rental amount of the property, plus expenses. One company may charge $100 per month for a flat rate. You may find this a good deal, but property management services cost usually charge a small percentage of the monthly rental fee.
Other Fees
● Vacant Unit – Some companies charge a one-month rent upfront. This fee may be charged if the property management firm is being engaged while it is vacant. They can use this money to pay a real agent a commission to place a tenant on the property or to pay advertising costs to show the property repeatedly to potential renters.
● Tenant Occupied Unit – Management companies only charge for tenants who live on the property. They may charge a reduced or no fee if the property is empty.
● New Tenant Placement – Managers may charge a fee for placing a tenant in a lease. A fee of 50% of the first month’s rent is common for new tenants. You should not be charged multiple fees upfront. They may charge a one-month rental fee, an upfront payment, or a large percentage of the monthly rent collected. You shouldn’t be required to pay them all unless you have low or non-recurring monthly expenses.
● Maintenance – Many companies have their maintenance staff. If this is the case you will need to negotiate which routine maintenance services are included in your monthly percentage and what they might charge you extra. For example, labor costs could be $20 to $45 per hour plus materials. However, you shouldn’t be surprised. You should establish a maximum amount that your property manager may charge.
● Evictions – Some tenants don’t work out, and this can happen from time to time. A property manager will most likely charge a fee to help you with the tedious task of evicting tenants. This usually amounts to $200-$500 per eviction plus any court costs.
● Late Payments –There may be a delayed payment fee. On average, this amount is between 25 and 50% of late fees collected.
These are generally for large-scale engagements where the property manager does all the heavy lifting in obtaining tenants and managing their homes.)
