Before hiring a professional property manager, many people want to know how much it’s going to cost. Today’s blog topic is about how you can make sense of the costs in Houston property management.
Fee Structures
Each property management company will have a different fee structure in place. In the past, management companies would take a percentage of the monthly rent that you earn from your rental property. The range would usually be somewhere between five percent and 12 percent, depending on the location of your property and the services provided by the management company. A more modern fee structure is the flat rate structure, where one flat fee is charged every month, regardless of the amount of rent your property earns. This is better for property owners because it allows your rental property to be more profitable for you.
Remember that the amount you pay is not nearly as important as what you receive in exchange for those fees.
Advertising
Your management fee includes the costs of advertising, plus taking photos and videos and listing your property online. A professional property manager has the resources and technology to put your listing on many websites, which saves you time and money. Property managers also help you find a qualified tenant. At Your Dream Real Estate, we guarantee each tenant we place for 12 months. If the tenant stops paying rent or violates the lease, we evict the tenant free of charge and find a new tenant without any cost to you.
Vacancies
Some property management companies will charge you a monthly management fee, even when your property is vacant. We don’t do that because we believe property managers should be motivated to find you great tenants fast, and there’s no benefit to letting a property remain unrented.
Inspections
Your property management fee will also pay for inspections. At Your Dream Real Estate, we inspect the inside and outside of the property 45 days after a tenant moves in and then we continue to inspect the property every three months. We provide our owners with a video that captures the property’s condition and we include a written report so you know your property is in good shape.
Legal Issues and Liability
Property managers are up to date with all the laws and regulations associated with rental properties. There are a number of steps, procedures and disclosures that are required at every point in renting property out to tenants. Your management fee will keep you out of court and away from liability.
Maintenance
Routine and emergency maintenance issues are also covered in the cost of property management. Tenants will call for help in the middle of the night and over weekends, and your property manager needs to be available to handle those phone calls.
If you still have questions about the cost of property management, please contact us at Your Dream Real Estate, and we’d be happy to tell you more.