Rental property owners who decide to seek professional Santa Rosa property management services know that they have a better chance of increasing their income and decreasing their expenses. Professional management is a valuable service that saves busy owners time and money.
When you’re looking for the right Santa Rosa property managers, make sure you measure the services that are offered as well as the fees that are charged. Some of the management companies you encounter will offer all-inclusive or full-service management. Others will have a list of items that you may have to pay for separately.
You’ll also see both flat-rate management fees and percentage-based management fees. A flat rate is a consistent sum that you pay every month, regardless of the work that’s done or the rent that’s collected. A percentage-based fee depends on the amount of rent that’s earned. A property manager will collect a percentage of that income. In Santa Rosa, the percentage ranges from eight to 12 percent.
Santa Rosa Leasing and Tenant Placement Fees: What to Expect
One of the first fees that many landlords must pay to their property managers is the leasing fee. This covers the preparation of your rental property and the placement of a well-qualified tenant.
Leasing fees are going to be a flat fee or a percentage of the first month’s rent. Sometimes, you may be charged a full month’s rent, depending on what’s included and the type of property you’re renting out. Your leasing fee should include setting the rental price, marketing your home online and through various real estate networks, handling showings, screening applications, and walking tenants through the leasing process.
You may need leasing services only. In that case, your leasing fee is likely to be higher than the leasing fee you’d pay when you sign on for full-service management.
Santa Rosa Property Management Fees: What to Expect
While the leasing fee is a one-time fee while your property is vacant, the management fee is paid every month, and it’s usually deducted right out of your rental earnings. Your management fee should cover everything that’s included in the day-to-day operations of your rental property or properties. This will include rent collection and late notices, enforcement of the lease agreement, communication and relationships with the tenants, property inspections, routine and emergency maintenance, and accounting and bookkeeping.
Pay attention to your management agreement so you know exactly what you’re paying for. If you encounter a management company with a super-low management fee, it’s probably because you’re not going to receive high quality property management. Or, you’ll find yourself paying more in the long run with the list of additional fees and extra charges that will apply.
Additional Santa Rosa Management Fees
Some of those additional fees might include:
- Administrative fees
- Account set-up fees
- Technology fees
- Inspection fees
- Maintenance mark-ups
- Accounting or reporting fees.
These can be really cost-prohibitive, but some rental property owners prefer only paying for the services they need in a given moment, and not ongoing, full-service management.