Frequently Asked Questions

Our fee schedule is detailed below and consists of a monthly property management fee, a leasing commission, and any out-of-pocket expenses incurred to maintain and repair your property.

 

The property management fee is the basic fee for managing properties and is generally based on the number of units under management, and the proximity of the units to each other. It is usually between 7 – 10% of the monthly rent collected. We will evaluate your portfolio and provide you a quote. In general, our property management fee schedule is as follows:

 1 – 3 units 10%

4 – 15 units 9%

16 – 30 units 8%

31 + units 7%

This fee pays for services such as collecting rents, making collection calls as needed, accounting services, managing trust accounts, posting advertisements with numerous syndicated and paid websites, marketing and promotional expenses, and the maintenance and update of Rent Manager access for each owner. (Rent Manager is the software we use to maintain all the information and reports necessary for owners to properly track and evaluate their properties.)

 

Yes. We charge $65/month minimum for managing a property once it has a rent-paying tenant.

 

No. We do not collect a property management fee if there is no rent collected.

 

No. There is no set-up fee.

No. There is no annual administrative fee. The monthly property management fee we collect covers our internal audit and preparation of annual owner statements; our review to ensure compliance with Federal and State laws; and any costs of updating our software and reporting platform.

 

Yes. Owners are provided a link to access the online portal, view property status, and generate numerous reports to help in evaluating their properties.

 

The time it takes to find a suitable tenant and rent a unit depends on many factors, including the condition and location of the property. On average, it can take between 1 – 5 weeks; or up to 6 – 8 weeks if we use CMHA (Section 8).

 

100% of the first month’s rent is charged when leasing a unit to a new tenant. This fee is used to offset the upfront costs of advertising, lockboxes, signs, showing the unit multiple times during the week and weekends, and accounting set-up costs. In addition, this is used to pay our Multiple Listing Service costs and commissions to Licensed Real Estate Agents who bring us tenants. Many hours are spent marketing a client’s property and providing as many showings as necessary for the goal of a quick rental with the best possible tenant.

 

We conduct background checks at no-cost to the owner.

 

A flat $125 fee is charged on lease renewals.

 

Yes. Each property has a reserve amount held for emergency maintenance needs (e.g. plumbing issues causing flooding) and other maintenance issues that must be taken care of before the next month’s rent is collected. In general, the required reserve amount is:

Single-family $300

Two-family $400

Three+ $200 for every unit more than two.

 

Unless it is a repair that needs to be done immediately to mitigate further damage, we ask for the owner’s approval if the repair will cost more than $250.

 

The average maintenance expense per property depends on the age, condition, and location of the property. In general, you should budget approximately 15% of gross rents for maintenance (including landscaping and snowplowing).

 

We negotiate with vendors for the best price on materials and labor, paying a wholesale price for these services (due to the volume of business we provide). On these discounted prices, we add 10% to cover our costs in negotiating, supervising, and managing the project from beginning to end.

 

We generally need all the funds in full prior to the start of the work, unless the owner has directed us to take the funds from the owner’s account (which would need to have enough to cover the costs of the project).

 

 We generally don’t charge any fee to handle recurring bills. However, we charge $25 if the owner requires us to make property tax payments, acquire certificates of occupancy, or process other filings.

 

Court fees depend on where the property is located. Generally, the court fees are approximately $125; our attorney charges $225; and the agent fee is $50. (Total fees are generally about $400 – $450.)

We are steadily growing the services we provide, the number of units we manage, and the staff we have available. We usually have  approximately 12 contractors in the field, 4 Property Managers, a Field Manager, an Office Manager, two administrative assistants, 3 sales agents, a Broker, a CPA, an attorney, and a consultant.

We are currently adding to staff and have the opportunity to manage any significant step-up in business.