Our Property Management Fee

Posted: January 24th, 2011  

Our management fee is paid monthly at 5% of rent collected. Our optional leasing fee is 50% of the first month’s rent.

Why do we charge separate leasing and management fees?
Leasing and management, while equally important, are completely different aspects of investment property ownership. A management fee is the cost associated with the administration of day to day activities involving your property. A leasing fee is amarketing expense that only comes around when a home is vacant and needs marketing to attract new residents.

Typically, of the leasing fee we collect, half is paid as a commission to the licensed Orange County REALTOR who brings in the qualified new tenant. We use the remainder to pay for professional photography, signage, professional flier design, distribution, ad listings, and other items associated with the overall marketing strategy.

Some property management companies tout both services for a single fee (typically 8-15% of rent collected). There are a few reasons why an owner may want to avoid that fee structure. The first problem is these management companies collect that increased fee every month, even if you have the same tenants in place for 3, 4, 5 or more years. The second problem is, when it comes time to lease the home again, often these management companies see marketing as an area where they can cut costs to save their own money, which is the last place a property owner should look to cut costs.

It doesn’t make any sense to muddle a leasing and management fee together. By clearly delineating between management and leasing, you have a better idea of how your money is spent. With happy tenants often staying for multiple years, our fee structure saves you money in the long run, gives better accountability of how your leasing investment is used, and makes more sense.

2 Comments on “Our Property Management Fee”

  1. 1 Mike Petrovic said at 11:03 pm on May 4th, 2011:

    Would you consider just renting my SFR out, and I could take care of the monthly stuff?

    Our tenant moved out of town and the house is vacant. 3BR, 2 1/2 BA

    The last lease was for $2500.00/month

    Thank you,
    Mike

  2. 2 Brian Donlyuk said at 3:55 am on May 5th, 2011:

    Yes, we do offer leasing service alone. The leasing fee for non property management clients is 6% of the first year’s rent, which we collect from your tenant’s move in money. This fee includes all commissions paid, advertising expenses, photography, tenant screening, credit checks, employment and rental history verifiation, lease document preparation including appropriate disclosures, and signing appointments.


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