Every property management company has a different way of working and a different way of charging management fees. You might hire a management company that charges one flat rate, or you might find a property manager who charges separately for every service that’s performed.
At Arbors Management, we have three all-inclusive fees. We do not like to piecemeal our costs, and we don’t have an upcharge on our maintenance services.
Today, we’re talking about our three fees and what you can expect when you work with us. These fees are also similar to many of the fee structures you’ll find with property management companies in and around Pittsburgh.
Leasing Fees in Pittsburgh
Our leasing fee is the equivalent of one month’s rent, meaning the first month of rent that we collect for you will pay for our leasing services. This fee covers everything involved in finding and placing a great tenant. We’ll handle the marketing, showing, pricing, and preparing the property for rent. We’ll also handle the application process and screen each tenant thoroughly and in compliance with the fair housing laws.
Once we’ve approved a tenant, we will take care of collecting the move-in funds, conducting a move-in inspection of the property to document its condition, and executing the lease agreement.
Management Fees in Pittsburgh
The leasing fee is a one-time fee that’s paid at the beginning of the lease. Then, you’ll have the monthly management fee, which is typically 9 percent of your monthly rent. The management fee can differ depending on how many units the property has, if we will need to employ onsite staff, how many total properties we’re managing for you, how much those homes are earning, and the neighborhoods in which those homes are located. Your management fee will come directly out of the rent we collect from the tenants. It includes everything that’s covered in our management services, from lease enforcement to inspections to maintenance. It covers our tenant and vendor communication, any notices that need to be served, our accounting and bookkeeping, and the portals we provide for tenants and owners.
Lease Renewal Fees in Pittsburgh
Our final fee is a renewal fee, which is a flat $250 charge that you’ll pay each time we renew a tenant. When you think about the cost of tenant turnover and vacancies, it’s easy to see what a value $250 is. We’ll work hard to retain your tenants, and the renewal fee will cover our negotiation and signing of the new lease. It costs you a lot less than it would if you were paying a new leasing fee.
There is no single right way to charge management fees. It’s important that the company you’re working with is transparent and honest. You never want to be surprised by extra charges, and it’s important to review your management agreement before you sign it.
Contact us at Arbors Management if you’d like to know more about our services and their costs. Our Portfolio Managers and Leasing Specialists would be happy to provide a personalized quote that’s based on your property and its unique needs.