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Assess Rental Property Manager Cost, Prior To Hiring A Property Consultant

by James Cannon Content Writer

If you are in the process of engaging a property management firm to serve you as a liaison between yourself and your tenant, you need to ensure that you are getting the best property management services for the expenses you incur for this purpose. The array of services a property management company extends can vary from individual to an all inclusive package with relevant fees for each service rendered.  In the end it will be for you to compare different rental property manager cost structures and opt for the best one that suits your budget. Given below are a few of the most common fees and the service they offer.

Commission

This is a monthly fee charged to the owner of the property for compensating the property manager for looking after the management of the property. This fee can range from 3% to more than15% of the monthly rent. Some managers may charge a flat monthly fee which again can range from $50 to over $200 a month.

Lease-Up or Setup Fee

This fee is related to compensate the property manager for the initial time he invests and resources utilized for creating an owners account, communicating the searching and other activities resulting in fixing a tenant. The property manager will realize this fee from the first month rental income. Generally, this fee is not refunded, once the property manager has initiated the process of tenant searching or any legwork has been started with the property.

Lease Renewal Fee

This fee comes in to picture, when a property manager undertakes the process of renewing the lease of current tenants and includes the costs of taking up paperwork involved in executing the new lease agreement. This fee can range from 50$ to $200 or even higher, and can be charged each time a lease renewal is done.

Advertising Costs

Based on the contract of the property management company, the advertising costs will be born by the firm or the owner or could share the costs.  If the rental property manager cost covers this cost, then you need to ensure to find out what is the nature of advertising or marketing he is going to take up.  In case the company is putting details of your property on their own web site or on other free online classified web sites, then it may not be worth your expenditure. They are a good number of rental or tenant resource accessible online that brings in prospective tenants for an affordable fee and you can think of these.


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About James Cannon Junior   Content Writer

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Joined APSense since, November 21st, 2013, From Fountain, United States.

Created on Dec 31st 1969 18:00. Viewed 0 times.

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