The perceived costs of property management often cause owners to manage their own rental properties. Unless you have a lot of time, resources, and expertise to dedicate to your rental properties, this is usually a mistake. There’s a huge opportunity cost to not using a property manager. Professionals can save you money on maintenance and reduce your vacancy loss. You will have better tenants in your property, reducing the risk of late and missing payments. Renting out a Lakewood property has become more complex than ever before. Today, we’re talking about what you can expect a local property management company to charge for their services. The value you receive from a good property manager will far exceed the leasing and management fees you pay.
Leasing Fees for Lakewood Landlords
The first fee that most owners encounter with a property management company is the leasing fee. This is a one-time fee which is either a flat fee or a percentage of the first month’s rent. It covers everything that’s involved in getting your property rented to a great tenant. The specific leasing services will depend on your management company, but should include some or all of the following:
- Pricing your property according to a comparative market analysis of Lakewood rents
- Preparing your property for the rental market
- Taking professional marketing photographs
- Listing your home online across several rental websites
- Responding to tenant inquiries
- Scheduling showings
- Managing the application process
- Screening potential tenants
- Collecting security deposits and move-in funds
- Signing and executing the lease agreement
Not all leasing fees will cover every single one of those items. You might be charged an additional advertising fee, and your tenants will likely be responsible for paying an application fee.
Monthly Lakewood property Management Fees
The monthly management fee is also going to be either a flat fee or a percentage of the rent your property manager collects. In the Lakewood area, most property managers charge between 8 percent and 12 percent of the monthly rent. It’s usually deducted from the rental payment before it’s forwarded to you.
The services generally involved in your management fee will include:
- Rent collection and follow-up on late rent
- Lease enforcement
- Accounting and bookkeeping
- Routine inspections
- Emergency and routine repairs and maintenance
- Managing legal regulations and compliance issues
- Evaluating the market for trends and changes
- Tenant relationships and dispute management
- Vendor relationships and price negotiations
- Professional development and technology improvements to help better manage your property
Some management fees will include negotiating a lease renewal, but some property managers will charge a separate renewal fee. Remember, your property manager should be working hard to keep a good tenant in place.
Additional Lakewood Property Management Fees
If you come across a management company with a very low fee, you should be suspicious. Check the fine print and find out if there are hidden fees. It’s likely you’ll be nickel and dimed throughout the relationship. Everything that a low-cost property manager does for you will come with an extra fee. The cheapest management fee is rarely going to lead you to the best property management.
Leasing and management fees are pretty standard. You might also encounter advertising fees, photography fees, technology fees, administrative fees, account set-up fees, paperwork fees, and any other assortment of costs. Some management companies charge a mark-up on the maintenance work they schedule. None of these fees are necessarily bad or wrong, but you have to know about them ahead of time. Make sure you understand what you’re paying for, and always ask to see a sample management contract when you’re interviewing potential management companies.
We’d be happy to tell you more about how to measure costs against value when you’re seeking Lakewood property management. Contact us at Assured Management, Lakewood property management experts serving residential landlords in West Denver and the surrounding areas, including Littleton, Golden, Wheat Ridge, Arvada, and more.
