Property management fees are paid by owners who do not live at their properties or by a group of people who share common occupancy of a building or commercial property. The property managers are paid to do the following:
- Efficient daily care and building operations much like an owner would;
- Maintain the appearance of the facilities and preserve or increase the value of the property;
- Inspect facilities, hire maintenance and contractual staff to perform upkeep of the property from trash removal to landscaping;
- Showcase the property to prospective tenants or buyers, explain occupancy terms, and collect monthly rents, pay taxes, and other maintenance fees.
- As an administrator, they ensure that all procedures comply with relevant laws;
- Keep property records and prepare budgets and financial reports for owners.
Types of Property Management
Chron.com defines several types of property management based on specialty:
- Real-estate managers oversee income-producing residential and commercial properties so that investors receive the maximum returns. They handle financial operations, such as tax payments, payroll, and maintenance bills.
- Community association managers administer communal properties such as condominiums so that all residents are treated fairly and pay their fees on time.
- Onsite property managers oversee daily operations on a single property, such as a shopping center. They keep facilities clean and make repairs as needed.
- Real estate asset managers coordinate the buying, selling, and development of real estate on behalf of investors and businesses.
With the variety of roles and job titles, fees of property managers can be costly. This is because degrees in business administration, accounting, real estate, or public administration are typical requirements, especially for offsite positions, dealing with finances and contract management. Licenses are required for real estate managers who buy and sell properties and for some association managers as well. You also pay a premium for experienced property managers.
Typical Fees Paid For Property Management
Typically, fees are arranged as a certain percentage of the monthly rental value of the property plus expenses. Other possible fees include:
- Vacant unit fee – used to pay for advertisements or agents to get tenants for your property;
- New tenant placement – payment for getting a tenant into a lease which may be an upfront fee or a chunk in the first month’s rent;
- Maintenance – labor and materials for the upkeep of the property;
- Evictions – as payment for going through the tedious eviction process plus any applicable court fees;
- Late payments – a percentage of the collected late fees for delinquent tenants.
So if you’re looking for professional and affordable property management services or advice, why not speak to one of our friendly staff today!