When you hire a property management Portland company, you want to ensure you are getting the best services for your money. These can range from a la carte to something that is an all-inclusive package. Along with this will come an array of fees, of which there is no set structure. However, you can learn what type of fees to expect, of which the common ones are listed below.
This is an ongoing monthly fee which is charged to you the owner to compensate the property manager for taking care of your property. This can be as little as three percent to fifteen percent of your monthly gross rent. Instead of a percentage some managers will charge you a monthly flat rate which can also vary. All companies will usually charge this fee.
A fee charged to you for the initial time and resources invested to compensate the property manager in setting up an owners account, showing your property or other things involved in placing tenants. This fee will usually get deducted from the first rent which comes in once the tenant is placed, but some will want the fee up front.
Lease Renewal Fee
A fee charged to you when a property manager renews a current tenant lease and covers the cost of starting the paperwork or communication that is involved in implementing the new lease document. They may also justify this fee if they do a year end inspection of your property. It can vary and be charged each time a lease renewal is put into place.
Costs for Advertising
Depending on the contract from the Portland property management company, they’ll either pay for the advertising costs or they could split them with you. If they are willing to cover this cost, then likely they’ll charge you the setup fee as stated above. Make sure that if they are covering this cost what type of advertising they plan on doing so you will get your money’s worth.
This is a cost in which you might have never heard of or had disclosed to you. It is a charge over and above the final bill on repair or maintenance work which was initiated by your property management company when using vendors or in-house maintenance staff. It needs to be disclosed in the Manager/owner contract that usually states the markup as a percentage above the final invoice.
This is not the best of fees to have to deal with, however it can happen. Your property manager insists they are doing all they can to find a tenant, but it’s been three months without one, so what do you do? If your property manager is doing the due diligence and keep you in the loop about their decisions, market conditions and the lines of communication are open, you won’t be second guessing his abilities. A cancellation fee can vary, but in all fairness a property manager during this time could be deserving of this fee, especially when they are pocketing the advertising costs, plus incurred plenty of legwork and time into your property.