When you’re hiring a Daytona Beach property management company to improve the performance of your investment properties, price is important. Even more important, however, is value. You need to know exactly what you’re getting in return for the management and leasing fees you’re paying your management partner.
Every company is going to structure their fees differently, so when you’re comparing one price to another, make sure you take that into account. What you pay will depend on the company you choose, the services you need, and the types of properties you’re asking them to manage.
Even with all those variables, you can still expect a few commonalities when it comes to property management fees in Daytona Beach.
Onboarding or Administrative Fee
The first fee you might encounter is an onboarding fee or an administrative fee that covers the costs of including your investment homes into a property management system. It might also be called a set-up fee.
Not every management company will charge this fee, but you’ll want to be prepared for it as it’s becoming more common. Some companies might include these costs in the leasing fee.
This is a one-time fee, and it shouldn’t be any higher than a couple of hundred dollars. Expect to pay $75 to $300 to cover the cost of paperwork, inspection of your property, and setting up portals and accounting software.
Leasing or Tenant Placement Fees
Nearly all Daytona Beach property managers will charge a leasing fee. This covers the cost of advertising and showing your home as well as placing a new tenant. Property managers typically charge between half a month and one full month’s rent to get a well-qualified tenant in place. You might also encounter a company that charges a flat fee – such as $500 or $750. It should include the cost of screening tenants, marketing your rental property, and signing the lease agreement.
This is also a one-time fee, although there may also be a lease renewal fee at the end of the lease term when your property manager negotiates a new rental amount or new lease terms with your current tenants. That will typically be lower than the leasing fee, since it’s better for you and your management company to retain the tenant you currently have in place.
Monthly Property Management Fees
Monthly management fees are typically a percentage of the rent that’s collected. In our market, that range tends to be 8 to 12 percent. Your property manager will keep that management fee once rent is collected and then deposit the remaining income into your account. There are also property management companies that charge a flat monthly rate.
Make sure you understand what’s included in your management fee. Generally, it should cover:
- Rent collection, including late rent notices and follow-up
- Tenant communication and relationships
- Lease enforcement
- Accounting and bookkeeping
- Emergency, routine, and preventative maintenance
- Technology, compliance, and administrative work associated with your property
Additional fees may show up, and while these are not necessarily unfair to owners, you still want to know about them before you’re expected to pay them. Some management companies will charge a maintenance fee, which is often a percentage of your invoice. You might also find a technology fee or an accounting fee. If inspections aren’t included in your property management fee, there may be a cost for those as well.
Transparency is crucial when it comes to Daytona Beach property management fees. If you’d like to hear more about how we structure the price of our services, please contact us at Oceans Luxury Realty.