Paying for professional Memphis property management likely isn’t as expensive as you think, especially when you consider the value and the services you’re receiving when you partner with a great company. Experienced real estate investors know that property managers can increase earnings and keep costs to a minimum. In exchange for what you pay, you’re receiving expertise, resources, and local market knowledge that’s hard to quantify.
When you’re considering who you want to hire and what you’re willing to pay, you’ll need to understand what’s included and what might be extra. Beware of super-low management fees; it likely means you’ll be charged extra for things like inspections, maintenance, marketing, and lease signings.
Every Memphis property management company is going to structure its fees differently, but we can tell you what some of the most common costs are likely to be.
What to Expect from Memphis Leasing Fees
The first fee most rental property owners will likely encounter in the process of hiring a property manager is the leasing fee. Some companies may call this a tenant placement fee or a lease-up fee. Most management companies charge this one-time fee to market and advertise your home, show your property, screen applications, find a tenant, and sign the lease agreement.
Most leasing fees are paid when you sign a management agreement or once a tenant has moved in. Some companies will take the fee from your first month of rent.
Always ask your property manager how much this fee will be and whether it’s included in the management fee or separate. You can expect to pay a flat leasing fee or a percentage of the first month’s rent. Some companies will charge you a full month’s rent to get your property leased.
Memphis Property Management Fees
Once the leasing fee is paid and tenants are in your property, most companies will charge a monthly management fee, which is deducted from the rent they collect on your behalf. This fee will cover all of the various day to day activities involved in the effective management and maintenance of your rental property. It also includes lease enforcement, tenant relations, legal compliance, routine and emergency maintenance, accounting, and so much more.
A reputable Memphis property manager will provide an accounting statement or report every month to show how much your property earned and what was spent. On that report, you should see the cost of your management fee reflected.
Measuring Costs against Service
When you’re looking for a property management company in Memphis, don’t pick the cheapest company you can find. For high quality service, you need to measure value against cost. If your property manager is doing the bare minimum and nothing more, you shouldn’t be paying a large management fee. However, if you’re getting ongoing investment advice, assistance with situations like evictions and turnovers, or real value that shows up with higher tenant retention rates, increasing rental values, and savvy recommendations about the Memphis rental market, you should expect to pay a little bit more every month – and it’s well worth it. For any questions about property management fees, please contact us at RiverTown Realty.