Have you ever driven in the fog?
You have to drive slowly, right?
Or you might run into something.
You can see the same thing going on with some property management companies.
They offer discount management and leasing fees, but they make up for it somewhere else.
They put up smoke screens to conceal what’s really going on.
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.
- 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.
And to make matters worse, they have you locked into annual contracts that you just can’t get out of until the contract expires.
I hate when a provider that’s providing me poor service has me locked into a contract like that.
It reminds me of a certain phone company that every few weeks was shutting off my internet service because they screwed up an order.
We wasted so much time on the phones.
And suffered with no service.
But since we had just begun our service with that company, we had 11 more months on our contract.
Even though the company was not providing service, we had to pay out the rest of the contract.
It’s a lot easier to drive under a cloudless sky.
We like make our contracts as transparent as a cloudless sky.
That’s why we only charge two administrative fees for property management.
And, if things are working out and you wish to cancel your service with us, you can do so at any time.
The other ways we are transparent is that we provide you an itemized statement every month which comes out between the 12th and 14th depending upon when the weekend falls. Seeing all the details is important, right? That’s why we provide you copies of all invoices, no matter how small.
And, there is an on-line portal for owners that you can check anytime, 24/7, to check the current status of your account.
#1 How much are the Leasing Fees?
For OKC Home Reaty, leasing includes advertising, showing, screening, and signing the lease.
It includes getting high quality photos of the property to post in on-line advertisements.
Our automated showing system gives us an edge when it comes to leasing out properties. It allows prospective tenants to schedule 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 take to lease out properties, but it’s worth it if we avoid a problem tenant.
We charge a leasing fee of ½ of the first month of rent if you use our automated showing system.
#2 How much are the management fees?
Property management should include being a complete interface with the tenant.
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 10% and 12% of the gross rent collected on a monthly basis for management fees.
The management fee for OKC Home Realty Services is 10% of the rent up to a maximum of $100 per month per unit.
#3 What are other fees you should know about?
Again, OKC Home Realty only has those two administrative fees, leasing fees and management fees.
There are NO other administrative fees.
Other companies typically have administrative fees that you need to know about before you enter into a management agreement.
One question to ask is how much the property management company charges for annual renewal fees.
The lease renewal fee is just that, a fee to renew the lease.
This is charged even though there is no turn over in the property.
These are a good deal for the property management company that charges them. But someone needs to explain to me why this should be paid. What is the justification for this charge? My company, OKC Home Realty Services, absolutely refuses to charge a lease renewal fee.
Why should we? There is no actual work going on. And, we don’t have to advertise or show the property.
Other hidden fees you need to ask a prospective property manager about include if they charge extra administrative fees for book keeping, doing evictions (representation in court), and/or up-charges on maintenance expenses. As a general rule, my company does not charge for those services.
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