What are the Typical Fees for a Property Management Company in Orange County FL?
Every property management company structures its fees a little differently. The important thing to compare when you’re looking at different price structures is the service you’re getting in exchange for those fees. A super-low management fee might seem enticing, but if it only covers rent collection and everything else is extra; you’re not getting much of a bargain.
There are a few standard fees and some extra fees that you can expect to come across when you’re looking for professional residential management in Orange County, Florida.
Leasing or Tenant Placement Fees
The first fee you should be prepared to pay is the leasing fee. This is a one-time fee and it is either a flat fee or a percentage of your first month’s rent. It covers the costs associated with finding and placing a well-qualified tenant for your property. Most leasing fees will include:
- High quality photographs
- Help in preparing a property for rent
- Pricing the home
- Creating a listing
- Sharing that listing across several online rental sites
- Professional yard signs
- Responding to questions from prospective tenants
- Collecting applications
- Screening tenants
- Conducting a move-in inspection and report
- Lease signing and execution
- Collection of security deposit and move-in funds
You’ll want to find out if any of these things are not included in your leasing fee. A property management company that can reduce your vacancy time and get a great tenant into your property for the right price is well-worth any reasonable leasing fee.
Monthly Management Fees
Your monthly management fee will usually be a percentage of the rent that’s collected. In Florida, that tends to be between eight percent and 12 percent of the month rent. So, if your property rents for $1,500 per month and your management company charges a 10 percent management fee, you’ll pay $150 per month. Sometimes, a management company will charge a flat fee every month regardless of your rental rate.
The management fee should cover everything a property manager does to protect and maintain your home. This includes rent collection, lease enforcement, inspections, documentation, accounting, tenant communication, the service of notices, legal and regulatory compliance, and responding to routine and emergency maintenance.
Additional Property Management Fees
You can expect to pay leasing and management fees regardless of which management company you choose. Some property managers will charge additional fees such as account set-up fees, administrative fees, advertising fees, technology fees, inspection fees, accounting fees, and maintenance mark-ups. None of these are necessarily wrong; but you do want to be sure you’re aware of them. Talk about all the fees you’ll be responsible for paying up front, and look through your management contract carefully before you sign it. The last thing you want is a big surprise in your accounting statement.
Professional management offers a lot of value and can actually help you earn more and spend less on your investment home. Our fees are also tax deductible. So, it’s a great idea to seek professional property management. Make sure you understand the fee structure and what you’re getting when you sign the contract.
If you’d like to hear about our fees, contact us at Park Avenue Property Management. We’d love to tell you more about our services and competitive costs.