The cost of property management depends on the fees that a company charges. As you can guess, there are management fees that you’ll pay in exchange for the professional services that a property manager provides.
Property Management Cost Structure
The amount you pay for property management in Tucson can be a percentage of the rent collected or a flat fee based on the average cost of doing business for the management company. Sometimes, the fee is a combination where there’s a minimal monthly fee and then a percentage above that.
In addition, many property management companies will charge a set-up fee. This covers the cost of setting you up in their books, and beginning the process of putting you in their MLS system, taking photos, and doing the work that’s required to start your partnership. Some companies will also charge an annual administrative fee. This is because the monthly management fees don’t always cover the operating expenses. There is a lot of government regulation that’s required, and there are costs associated with that. Marketing fees are used by many companies, and those may be charged monthly or annually. You can also expect a leasing fee. This is usually a percentage of the first month’s rent, and it will be charged every time a lease is renewed. Some companies look at a home’s age and condition to anticipate the number of work orders that will be required. A cost might be included on maintenance invoice, which is usually a percentage of the total. Other companies think that maintenance is part of their business, so they don’t add an extra fee.
Tenants pay an application fee. There are also late fees charged to the tenant if rent is late, and sometimes the property manager and the landlord will split the late fee that is collected. These fees can be a flat fee, a percentage of the late rent, or a minimal flat fee and then an extra fee every day that the rent is late. A Tucson property manager will often charge tenants a communication fee. When the HOA sends out a notice because the weeds are overgrown or the trash cans haven’t been taken in, or someone is parking on the street, property managers incur a cost in communicating with the tenant. It’s usually a nominal fee, but it covers the cost of paperwork and the manager’s time. Eviction fees are also generally the responsibility of a tenant. Each eviction usually comes with processing fees, filing fees, service fees, attorney fees, and other court costs.
Discuss this with your property manager before you sign an agreement. If you have a question about our fees or anything related to Tucson property management, please contact us at Foothills Properties. Have a wonderful Tucson day!