Most people know that if they want to hire a licensed real estate agent to sell their home they will most likely have to pay a 6% commission to get the job done. However things are not so black and white when it relates to property management.
There are many factors that will determine what property managers may charge for their services. We must first understand that property managers can provide two types of services, tenant placement and or management services. Â If you are only interested in having a property manager find you a tenant you will most likely have to sign a â€œ non managementâ€ agreement with the agent.Â The property managers will market the property, show the property, qualify the tenant and eventually get the tenant to sign a one year lease agreement. Once the tenant is placed the agent is done and the home owner takes over. Â It is common for the property manager to charge the owner 1st month rent for this service.
The second option is to have the property manager â€œmanageâ€ the property. The responsibilities are the same as tenant placement however after the tenant is placed the manager is responsible for Â collecting rent, handling maintenance issues, holding deposits and disbursing funds to the owner. It is common for property managers to charge the owner 50% of the first monthâ€™s rent and 10% of the rent afterwards for managing the property.
No matter if you are looking for tenant placement or property management services, always read the fine print and make sure there are no upfront fees or strange cancellation policies in place.
Lic Real Estate Broker / Owner