Want to know how much do property managers charge? How about leasing fee and property management fees? This article breaks down what property management OKC companies charge.
To hire a good property manager, it costs you around $100 per month. Some property management company charges between 10 -12 % of the Property’s rental value. So higher the property value higher the fee charged.
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 is some excellent articles 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.
OKC Home Realty Services, LLC charges one-half month of rent as a leasing fee.
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.
#1 Leasing Fees: Ranges from $200 to the First Month of Rent
The leasing fee is what the property management company charges for the leasing of the property, whether managed or managed by the owner. The leasing fee applies to all the work involved in the rental of a home. This includes showing the property, screening all applicants, and finding a good tenant who will be approved.
As a benchmark, plan to pay between 8 and 12% of the monthly rental value of the house, plus expenses, to a typical residential property management company. Some businesses can charge, say, a flat rate of $100 per month. This may or may not be a good deal for you, but a small portion of the monthly rental cost is paid by most property managers.
Some companies charge a low flat fee. Others charge up to one full month of rent. The ones that charge the low fee may try to make up for it with other administrative fees, so make sure all those services are included in the leasing fee.
#2 Property Management Fees: 8% to 12% of the Total Rent Cost
This is the primary fee you pay each month. This fee applies to the day-to-day management of your property, such as collecting and processing rents, communicating with tenants, conducting annual property inspections, coordinating repairs, and responding to emergency maintenance calls. 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) charges a property management fee of 10% of the rent.
#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:
TYPES OF FEES
½ to 1 full month of rent
Lease processing fee
$200 to the owner on top of the leasing fee charged to the owner
$60 to $80 per hour
Set up fees
- Also, some lock you into annual contracts that you just can’t get out of until the contract expires. 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.
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.
and one more thing is you will get a better idea if you are paying a good amount to your property manager or not once you know what are the roles and responsibilities of a property manager. so read this blog about what does a property manager do
#3 Other Possible Fees
Here are the possible additional fees that a property management companies can charge you:
Vacant Unit Fees: Some firms charge the rent upfront for 1 month. You may pay this fee if you try to hire a property management firm while the property is vacant. This gives them cash to pay the property agent a commission to place the renter on the property, or to pay the advertising costs, repeatedly showing the property to prospective tenants.
Tenant Occupancy Unit: Here, the charging only takes place if the tenant is in the property. They will charge a reduced fee, or no fee at all, if the property is empty.
New Tenant Fees: A new tenant placement fee or incentive structure may be paid by certain property managers to bring a tenant into a lease.
Maintenance Fees: Since some property management companies can hire their own maintenance team during maintenance work, the charging can take place. `
#4 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 to admit 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.
When Should You Consider Hiring a Rental Property Management?
In some cases, managing a rental property on its own might be the best option. However, here are some of the questions you should ask yourself before deciding whether to hire a property management company to handle the rental property or not:
Do I Live Within Close Proximity to Every Rental Property I Own?
Time is one of the important factors. You must consider how far is the rental property that you own from your living place. If you are living a bit far from the rental property that you own, then you might find difficulty in managing the rental property in different situations such as urgent repairs required.
Would it Be Advantageous for Me to Invest a Lot of Time Into Property Management?
Managing a rental property is a time-consuming business activity. Performing activities such as finding tenants, tenant screening, regular inspections, dealing with repairs and maintenance, and other ascepts of managing properties can take a lot of time, especially if you own several rental properties. Self Managing is not referred of you are not capable of dedicating a dedicated time for rental property management.
Do You Want to Maximize Your Profitability?
You might not consider hiring a property management company if you want to maximize the profit from the rental units. If you are considering hiring a property management company, you may need to pay certain amounts of rents annually to the property management company which decreases the amount of the profit of your rental unit.
Are You Capable of Dealing With the Tenants?
Screening Tenants can be a difficult task if you do it right(credit checks, calling references). Plus, there’s a fair chance you’ll inevitably have to deal with an unfair tenant, late rent, or eviction even if you screen your tenants well. Great, if you feel like you’re well prepared to deal with this stuff. If not, it might be worth every penny to hire a property manager.
Is Property Management Worth It?
Determining whether or not you employ a property manager depends on your priorities and your property.
To some investors, property management isn’t worth the money. They may be owners who have several properties and are full-time landlords. Or as their side work, they have chosen to be a landlord.
It was easy to manage assets that needed very little effort for other owners, who skipped management. One important note, even though you want to manage your own house, if you are no longer able to manage it, it’s worth getting a contingency plan. There is no way they will want to manage their own rental assets with those investing in real estate. In the hiring of a property management team, they see merit and have very little participation in the rental unit. These owners are expected to write down the management fees for their taxes. They really appreciate that they can spend their time doing something other than thinking about their real estate investment.
Frequently Asked Questions About Fee Charged by OKC Home Realty
What percentage do property managers take in a rental process?
The percentage obtained can vary, but traditionally it is between 8% and 12% of the monthly gross rent.
Does OKC Home Realty (Property Management OKC) charge any set up fees
No. OKC Home Realty (doing business as Property Management OKC Plus) does not charge any set up fees.
What money must the owner pay upfront in order to start service with OKC Home Realty (Property Management OKC )?
Nothing must be paid upfront in order to start service. However, if you want us to do some work to your property, those funds do prior to work being done.
How Much are Leasing Fees?
Leasing fees ranges from $200 to the First Month of Rent