We’re talking about the cost of property management in the Tampa Bay area. Fees will vary from broker to broker, and a professional management company with more experience and knowledge will usually have a greater menu of services. An investment home is your greatest asset, so it’s not the time to bargain shop.
Leasing and Management Fees
The basic fees are leasing fees and management fees. Leasing fees usually cost between half a month’s rent and one month’s rent, depending upon the exposure the property gets to the market and the amount of oversight that’s needed for the agent during the move in process. Basic monthly management fees can be between eight and 15 percent of the earned rent. This is a reasonable cost, especially if it’s inclusive of all the administrative things you get, such as attorney-approved leases, online account access and electronic funds transfer. You will find that there are additional fees either clearly outlined in a contract or they’re hidden. Beware of the hidden fees and be sure you know what you’re paying. Be cautious about value, too. Don’t look for the lowest price. Instead, find out what kind of service you get in exchange for the fees.
Other services may also be offered in addition to what is covered by the leasing fee and the management fee. For example, you can often pay a monthly fee of around $10 for an eviction assistance program. If you have an eviction, you’ll have the $500 or $600 you need to pay for it. You might also be offered a professional property inspection. When you’re buying a home those can cost $300 or $400. Landlords can often get them for about $120. These are good inspections to do on a regular basis. Property managers don’t get up on roofs or crawl into hidden spaces when inspecting properties. You want to see what property managers aren’t able to see during a walk through.
Landlords also have the option to purchase home warranties to cover appliances and AC. These cost between $450 and $700 depending on how many different things you’re covering. Annual air conditioning services are often worth the investment so your coils are cleaned and the system is inspected between cold and hot weather. You can also sign up for filter delivery services.
If you’d like to talk to us more about property management services, please contact us at Berkshire Hathaway.