Want to know how much do property managers charge? How about leasing fee and property management fees? This article breaks down what OKC property management companies charge. Most companies charge a fee for locating and placing a new tenant, called a leasing fee. And, a property management fee for the day-to-day aspects of managing your property.
When you go to buy something on amazon, you expect to see a price. In fact, I do a lot of shopping on amazon, but I don’t think I’ve ever seen a product on amazon that doesn’t have a price.
But when you go to an Oklahoma City property management companies website, you usually can’t find a price for their service. For some reason, it’s supposed to be this big secret that they can’t tell you unless you contact them.
When I go shopping online, I expect to find a price for what I’m shopping to find. It’s really frustrating when I can’t find one. Why do I have to call someone to get that information?
After all, it’s really quite basic stuff. There are some excellent article that review how much property management companies charge, and the range of items they charge their customers.
How Much are Leasing Fees and Property Management Fees?
For the most part, there are only two administrative fees for property management. Anyone who tries to make it more complicated is putting up smoke screens.
The first one is the leasing fee. Again, it’s the fee to place a new tenant at the property.
#1 Leasing Fees: Ranges from $200 to the First Month of Rent
Some companies charge a low flat fee. Others charge up to one full month of rent.
It should include getting high-quality photos of the property to post in online advertisements, placing all of the advertisements, showing the property, taking applications, screening the applications, and putting the tenant onto a 12-month lease. The ones that charge the low fee may to try to make up for it with other administrative fees, so make sure all those services are included in the leasing fee.
OKC Home Realty Services, LLC (doing business as Property Management OKC Plus) charges one half month of rent as a leasing fee.
One important distinction is that we guarantee our tenants. That means if they move out during the initial lease period, we will replace that tenant at no additional charge to the owner. We can make that guarantee because we do a careful job screening the tenant so it doesn’t happen that often.
Our automated showing system gives us an edge when it comes to leasing out properties. It allows prospective tenants to scheduling a showing without our office having to contact them. And, it pre-screens them so only tenants who meet our pre-qualification criteria will go to look at the properties.
We are rigorous in our screening process.
That sometimes increases the length of time it takes to lease out properties, but it’s worth it if we avoid a problem tenant.
#2 Property Management Fees: 8% to 12% of the Total Rent Cost
Property management fees are the fees for the day-to-day running of the property. It should include collecting the rent, following up on items such as maintenance, and providing an accounting report to the owner.
In addition, property management companies should be the interface between the tenant and the owner.
The property manager needs to set up and take care of maintenance, handle collections, and other tasks that are related to the property or tenant issues.
Typically, property management companies charge between 8% and 12% of the gross rent collected on a monthly basis for management fees.
OKC Home Realty Services (dba Property Management OKC Plus) charge a property management fee of 10% of the rent up to a maximum of $100 per month per unit.
#3 How much do property managers charge? Other Fees You Should Know About
Here are some of the fees that I know some other companies are charging:
- Releasing fee – ½ to 1 full month of rent. This is a tenant signing up for another 12 months. NOT a new tenant.
- Lease processing fee – $200 to the owner on top of the leasing fee charged to the owner. This is in addition to the leasing fee.
- The management company keeps 100% of the late fees from the tenant. That’s right, they don’t pay anything to the owner.
- Charging out their technicians at $60 to $80 per hour for items as simple as repairing a toilet.
- Set up fees, some as high as $500.
Also, some lock you into annual contracts that you just can’t get out of until the contract expires.
Other hidden fees you need to ask a prospective property manager about include if they charge extra administrative fees for bookkeeping, doing evictions (representation in court), and/or up-charges on maintenance expenses. As a general rule, my company does not charge for those services.
So, What are you paying for?
In truth, the fees that reputable Oklahoma City property management companies charge are not that much different.
You are paying the property management companies systems.
Here’s where experience comes into play. What systems does that company have in place to keep the rental payments coming in, to keep costs down, and to communicate to you what’s going on.
Every day we are in business, we learn something new. That means we improve every day.
You are paying for the property management companies integrity.
Will they tell you the truth, even when they screw up?
We make mistakes sometimes. It’s not easy admitted when you did something wrong, but I’d rather admit I made a mistake and move on because it’s better for everyone involved. Every company makes mistakes. What matters is how we deal with them when they come up.
You are paying for the property management companies experience.
Some real estate companies can do everything across a broad spectrum of services all across the state. And, do a good job at most of them.
As a company, we’ve never done well trying to be the right solution for every need. The problem is that you never get really good at anything. That’s why we focus on doing a good job with residential property management on single family homes and small apartment properties in the OKC metro area. We do also assist in some sales of investment properties, but that is definitely not our focus.
Frequently Asked Questions About Fee Charged by OKC Home Realty (doing business as Property Management OKC Plus)
Does OKC Home Realty (Property Management OKC Plus) charge any set up fees?
No. OKC Home Realty (doing business as Property Management OKC Plus) does not charge an set up fees.
What money must the owner pay up front in order to start service with OKC Home Realty (Property Management OKC Plus)?
Nothing must be paid up front in order to start service. However, if you want us to do some work to your property, those funds are do prior to work being done.